Glencore Targets $1 Billion in Cost Savings with Strategic Asset Overhaul

Glencore Targets $1 Billion in Cost Savings with Strategic Asset Overhaul
A leaner, more focused Glencore eyes profitability boost by 2026 amid production shift and global market pressures

Streamlining for Strength: Glencore’s New Strategic Direction

Glencore, one of the world’s largest mining and commodity trading companies, has announced plans to save $1 billion by the end of 2026 following an in-depth review of its industrial assets. The initiative is part of a broader strategy to streamline operations, cut costs, and enhance profitability amid shifting global market dynamics.

The company revealed its cost-saving ambitions as it reported a 26% decline in copper output for the first half of 2025. Despite this, Glencore is staying the course on its full-year copper production forecast of 850,000 to 910,000 metric tonnes.

Copper Output Dips—But Forecast Remains Positive

During the first half of 2025, Glencore’s copper production dropped to 343,900 metric tonnes, largely due to declining ore grades. The company also announced the closure of its last two copper mines in Mount Isa, Australia, a move aligned with its asset review.

Despite this downturn, Glencore remains confident of an upturn in the second half of the year. In 2024, the company produced around 952,000 tonnes of copper, a metal critical to electric vehicle batteries, data centres, renewable energy systems, and global infrastructure.

Viterra Sale Strengthens Balance Sheet

Glencore’s recent sale of its agribusiness unit, Viterra, in July has added approximately $200 million to its marketing earnings and further contributes to its long-term financial health.

The company has now revised its full-year marketing EBIT forecast to $2.3 billion–$3.5 billion, up from its previous guidance of $2.2 billion–$3.2 billion. The trading division has already delivered $1.35 billion in profits in the first half of the year alone.

Stronger Cobalt Production Supports Battery Market Growth

While copper production has faced challenges, Glencore’s cobalt operations have delivered positive results. The miner reported a 19% increase in cobalt output, reaching 18,900 tonnes in the first half—reinforcing its status as the world’s second-largest cobalt producer.

Cobalt is essential in battery production, particularly for electric vehicles and grid storage, and demand is expected to continue rising in line with the global clean energy transition.

What Can a More Streamlined Glencore Achieve?

A leaner Glencore is positioned to achieve several key benefits:

• Improved operational efficiency across its mining and trading divisions
• Stronger returns for shareholders via focused capital allocation
• Enhanced agility in responding to commodity price shifts and global supply chain demands
• Sustainable growth through a tighter portfolio of high-performing assets

By cutting underperforming operations and investing in high-potential areas like cobalt and energy transition metals, Glencore is reshaping itself for the demands of the next decade.

Conclusion: Glencore Sets the Stage for a More Profitable Future

With a $1 billion cost-saving plan in motion and a clear focus on critical growth sectors like battery metals and marketing excellence, Glencore is aligning itself for long-term profitability. Despite short-term setbacks in copper production, the company is doubling down on what works—efficiency, scale, and adaptability.

As global markets increasingly rely on strategic metals for the green energy transition, Glencore’s sharpened focus may not only stabilise its operations but also position it as a key player in powering the global shift to sustainability.

Sources: (Investing.com, Reuters.com)