Glencore, Led By South African Executive Gary Nagle, To Cut Global Operating Costs By 1 Billion

Glencore aims to cut 1 billion in global operating costs by end of 2026 amid refining and coal profit pressures.

The trading division expects 2.3 billion to 3.5 billion in profits this year, beating earlier forecasts with 1.35 billion in H1.

Plans include spinning off coal business on the NYSE and closing Mount Isa copper mine, shifting focus to energy transition metals.

Glencore Plc, the Swiss commodity trading and mining giant led by South African executive Gary Nagle, is targeting 1 billion in cost reductions across its global operations by the end of 2026. The move follows a strategic review of its vast industrial footprint, including mines and smelters, as the company responds to falling commodity prices and margin pressure in refining.

The cost-cutting announcement comes as Glencore raises its long-term profit forecast for its trading division for the first time in seven years, a signal of renewed confidence following its recent sale of grain business Viterra to Bunge Global SA.

Weve identified clear opportunities to streamline operations and sharpen our industrial focus, Glencore CEO Gary Nagle said in a statement Tuesday. The restructuring effort, aimed at improving how departments are managed and how technical systems are run, comes at a difficult time for the company.

Processing fees in its refining arm have fallen to historic lows, and coal, once Glencores biggest money-maker, is no longer delivering the returns it used to. The company has not yet broken down where it plans to cut costs, only saying that more details will be shared in its upcoming earnings report.

Even so, Glencores trading arm continues to hold up well. The division, which sets the company apart from more mining-focused rivals like Rio Tinto and Anglo American, now expects to earn between 2.3 billion and 3.5 billion this yearslightly higher than its previous forecast. It pulled in 1.35 billion in the first half alone, showing that the business still knows how to navigate unpredictable markets.