The company made that forecast at Wednesday's investor day. It also announced that it's looking to divest its Araguaia, Sipilou and Cosmos nickel properties as it looks to narrow its focus on core assets.
December 10 was diversified miner Glencore's (LSE:GLEN) 2014 investor day, and those following the company were no doubt pleased with the amount of information that came out of it. Company executives presented on most of the commodities Glencore is involved in, including copper, coal, oil and zinc, but for those in the nickel space no doubt the highlight was the talk from Peter Johnston and Kenny Ives. While Johnston provided an overview of what's happening with the company's nickel assets, Ives took the stand to discuss the nickel market as a whole — both revealed new information that's certainly important to take note of. Divestments coming Though Johnston said that in terms of nickel production Glencore has had a "very, very good year," he reminded investors that the mining giant still plans to divest some of its nickel properties as it hones its focus on its core assets. On the chopping block are Araguaia, Sipilou and Cosmos. Araguaia and Sipilou are both laterite nickel-cobalt deposits, though the former is located in Brazil and the latter is situated in Cote d'Ivoire. Cosmos, which consists of two underground mines and a concentrator in Western Australia, is currently on care and maintenance. Interestingly, an article from The West Australian notes that Cosmos was "the major target" for Xstrata when it took over Jubilee Mines back in 2007. Now, however, the asset "has no remaining economic mining reserves," though it does hold over 100,000 tonnes of nickel in a measured resource of 13.6 million tonnes at 0.78 percent nickel. It will be interesting to see which buyers step forward to claim those assets. The company expects to divest them in the next year or so.