Glencore is restoring ferrochrome production capacity in South Africa while reporting a substantial decline in cobalt output, reflecting contrasting operating conditions across its industrial and battery metals portfolio.
The Swiss commodities group reported that Wonderkop resumed operations in October, following the restart of Boshoek in September. The Lion smelter had already returned to production earlier in 2026. The return of these facilities contributed to a 29% quarter-on-quarter increase in attributable ferrochrome production as additional smelting capacity came back online.
South African Ferrochrome Capacity Returns
The restarts are relevant to stainless-steel production, where ferrochrome is an essential alloying material. South Africa remains one of the world’s major sources of chrome ore and ferrochrome, making the availability of its smelting capacity important to international steel supply chains.
European steelmakers remain exposed to South African electricity prices, operating costs and smelter availability. High power costs and weak margins had previously constrained parts of the country’s ferroalloy industry, limiting the competitiveness of local smelting operations.
The return of Wonderkop and Boshoek, following the earlier resumption of Lion, increases available processing capacity and improves near-term ferrochrome supply.
Cobalt Production Falls 52%
Glencore’s cobalt operations recorded a markedly different trend. Nine-month cobalt production totalled 13,700 tonnes, down 52%.
The reduction reflects export restrictions in the Democratic Republic of Congo (DRC) and operational decisions to prioritise copper production. Glencore has also retained more cobalt in process solutions instead of converting it into saleable hydroxide.
Lower production of cobalt hydroxide in Central Africa reduces the volume of material immediately available to downstream processors, including those supplying European battery-material manufacturers.
European companies have been working to diversify battery-metal sourcing and expand domestic refining capacity, but downstream processing remains dependent on the availability of suitable upstream feedstock. Reduced cobalt supply can therefore affect the operating economics of refining projects beyond the producing region.
Copper Output Increases to 598,600 Tonnes
Copper production provided another contrast in Glencore’s latest operating figures. The company produced 598,600 tonnes of copper during the first nine months, representing a 12% increase on an adjusted basis, excluding disposals and closures.
The increase reflects Glencore’s strategic emphasis on copper amid growing long-term demand expectations associated with electrification, electricity grids and data-centre investment. The contrasting production trends illustrate how operating decisions and market conditions are affecting individual commodities differently within the same mining portfolio.
Implications for European Industrial Supply Chains
The developments have implications for two European industrial sectors with different raw-material requirements.
Ferrochrome is a critical input for stainless-steel manufacturers, while cobalt remains part of the supply chain for several battery cathode chemistries, despite the expansion of lower-cobalt alternatives and lithium iron phosphate technologies.
The restart of South African smelting capacity improves ferrochrome availability, whereas lower cobalt hydroxide production restricts immediately accessible supply for battery-material processors.
Glencore’s update included no new European offtake agreement or project-finance package. The reported developments concern physical production and processing capacity rather than new financing commitments. For European industrial buyers, the figures underline the importance of actual mine and smelter output, as well as the availability of marketable material in the chemical and physical forms required by downstream industries.
