Glencore: Plans to increase copper production to 1.6 million tons per year over the next decade
Global commodities giant Glencore has announced a long-term expansion plan, aiming to increase copper production to approximately 1.6 million tons by 2035, nearly doubling current levels.
The plan was officially announced at the company's first capital market briefing in three years, held on December 3. CEO Gary Nagle stated that the company has made significant adjustments to its operations and is confident in achieving this goal. Boosted by the news, Glencore's share price in the London market surged by up to 6.2%.
However, Glencore simultaneously lowered its short-term production forecast, reducing its 2026 copper output target from the previous estimate of 930,000 tons to between 810,000 and 870,000 tons. This adjustment is primarily due to operational setbacks at the Collahuasi mine in Chile. The company expects 2026 to be a near-term production trough, with output gradually recovering from 2027 onward.
The announcement of this expansion strategy comes as copper prices continue to hit historic highs, with copper at the London Metal Exchange breaking $11,500 per ton on Wednesday. Driven by long-term growth in demand across global data centers, electric vehicles, and renewable energy fields, major mining companies, including Glencore, are competing to expand production in order to secure future dominance in copper supply.
Expansion Focused on Upgrading Existing Mines
Glencore’s growth in copper output will mainly rely on expansion projects at existing mines, aiming to gradually increase capacity over the next decade. Core projects include the Collahuasi mine in Chile, as well as several major mining sites in Argentina, Peru, and the Democratic Republic of Congo. The company reaffirmed its plan to raise copper production to 1 million tons by 2028.
As a key aspect of the expansion strategy, Glencore has decided to restart the Bajo de la Alumbrera mine in northwest Argentina. This open-pit mine was shut down in 2018 due to resource depletion, large-scale rockslides, and longstanding opposition from local communities and environmental groups. Now, under the Argentine Milei administration’s policies to improve the foreign investment environment, efforts to resume production at the mine are gradually advancing.
New Mines Break Old Taboos
Glencore also plans to advance its El Pachón project in Argentina, with a projected total investment of about $9.5 billion. The company said it will consider bringing in partners to share the risks and reduce costs.
Building new mines has long been considered a “taboo” within Glencore. Former CEO and current largest shareholder Ivan Glasenberg has repeatedly criticized competitors for putting pressure on commodity prices by building new mines.
However, current CEO Gary Nagle has noted that, after copper markets tightened significantly, there have been “structural changes.” He emphasized that new projects coming online will not erode existing supply, and stated “now is the right time to approve these projects.”
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