Glencore Results: What Next After Rio Tinto Merger Collapse?

Glencore has confirmed a major production shift as it aims to become one of the world's largest copper producers over the next decade.

Following the publication of its 2025 annual results, the Swiss-headquartered miner revealed it is targeting approximately 1.6 million tonnes of copper production by 2035.

This ambition is supported by what the company describes as an enviable portfolio of highly capital-efficient copper growth options. The focus on copper comes shortly after the termination of talks over a US$260bn merger with fellow mining giant Rio Tinto, which would have created a global industry leader.

Strong second-half operational performance

The firm met its guidance for full-year production volumes for key commodities for the second consecutive year. Notably, copper production in the second half of 2025 reached over 500,000 tonnes, which was almost 50% above the first half.

This surge was primarily attributed to higher copper grades and improved recoveries at key sites including KCC, Mutanda, Antapaccay and Antamina.

“2025 was a year of significant progress, marked by a strong operational performance, continued portfolio optimisation and clear momentum for our copper-led growth strategy,” said Gary Nagle, CEO of Glencore. Gary said that results reflect optimised structures.

Global reach and workforce scale

Glencore, which was established in 1974 as a trading company, has operations in more than 30 countries and a workforce of about 140,000. It remains the world’s sixth-largest copper producer and the largest listed coal producer globally.

While copper is central to its future growth, the company continues to manage its extensive coal portfolio, which attracts scrutiny from climate campaigners but remains a significant profit driver.

The company recently scrapped plans to spin off its coal business after shareholders urged the commodities giant to hold onto the division, highlighting its role in keeping the lights on in developing economies.

Unlocking long-term asset value

The group has finalised a land access package with Gécamines for KCC, which is expected to unlock life-of-mine extensions and productivity improvements.

This pathway is intended to lead to approximately 300,000 tonnes per year of copper production at the site. Additionally, Glencore acquired the Quechua copper project in Peru to bolster its Antapaccay district.

“We have a clear pathway for our base copper business to exceed 1 million tonnes of annual production by the end of 2028, with a target to produce c.1.6 million tonnes by 2035,” said Gary.

Disposals and portfolio optimisation moves

Portfolio simplification remained a priority throughout the year, with the disposal of the Pasar copper smelter in the Philippines and the Puerto Nuevo coal export terminal in Colombia.

The company also signed a non-binding memorandum of understanding to potentially sell a 40% interest in its DRC copper and cobalt assets to a US government-backed consortium.

These moves are part of a broader effort to de-risk organic production growth options. Despite annual profits slipping 6% to US$13.5bn, the underlying momentum in industrial performance was clear, with industrial adjusted EBITDA in the second half rising 65% compared to the first.

De-risking organic growth for shareholders

Glencore remains focused on delivering its 2026 priorities while achieving operational targets. The company intends to continue progressing its growth options with the objective of supporting long-term value creation.

The collapse of the Rio Tinto deal, which had been floated repeatedly over the past two decades, leaves Glencore to pursue its copper-led strategy independently.

“We remain focused on delivering on our 2026 priorities, achieving our operational targets and de-risking and successfully progressing our organic production growth options,” said Gary.

He concluded that the firm remains committed to operating safely, responsibly and ethically while meeting global demand for energy transition metals.