Arab Today, arab today top producer glencore slashes zinc output by a third
Last Updated : GMT 11:33:18
Arab Today, arab today
Arab Today, arab today

Top producer Glencore slashes zinc output by a third

Arab Today, arab today

Arab Today, arab today Top producer Glencore slashes zinc output by a third

Glencore, which claims to be one of the world's largest miners
Geneva - AFP

Mining and commodities giant Glencore, burdened by debt and a commodity price crash, announced Friday it was slashing its worldwide zinc output by a third.
"The main reason for the reduction is to preserve the value of Glencore's reserves in the ground at a time of low zinc and lead prices, which do not correctly value the scarce nature of our resources," the miner said in a statement.

Glencore, which claims to be one of the world's largest miners and producers of zinc, said it was slashing zinc production by 500,000 tonnes across its operations in Australia, South America and Kazakhstan.

The company said its operations at Lady Loretta in Australia and Iscaycruz in Peru would be suspended and operations at George Fisher and McArthur River in Australia and various mine operations in Kazakhstan would reduce production levels.

"These changes, which represent around one-third of Glencore's annual zinc production, will reduce fourth quarter 2015 mine production by approximately 100,000 tonnes of contained zinc metal," Glencore said.

The Swiss-based company, which employs around 181,000 people worldwide, acknowledged that "these changes, although temporary, will unfortunately affect employees at our operations."

- More than 1,500 jobs -

A company spokesman told AFP that around "1,540 people will unfortunately lose their jobs."

"This decision has not been taken lightly," the company said.

It said it in coming days it would "engage with all employees" and provide support for those affected by the changes.

Zinc has a number of industrial applications, including as an anti-corrosive coating for iron and steel, a component for batteries and making metal alloys, and as a white pigment in paint.
Around 13.5 million tonnes of zinc is produced worldwide each year, according to the latest data from 2013 from the International Lead and Zinc Study Group.

Glencore meanwhile insisted the decision would "ensure that our zinc operations are sustainable well into the future, providing jobs in the communities where we operate and returns to shareholders."

"Glencore remains positive about the medium and long term outlook for zinc, lead and silver prices," it said.

Following the news, Glencore saw its share price surge 6.38 percent to 128.35 pence in early trading, making it the top gainer on London's FTSE 100 index.

The company's share price has meanwhile plummeted 60 percent since the beginning of the year, and has already faced wild fluctuation in recent weeks amid investor fears that sinking commodity prices would affect its ability to meet outstanding debt obligations.

Most resources-linked firms have taken a hit in recent months as the price of copper, aluminium, iron ore and oil have tumbled as growth in China's economy, the world's second largest, slows.

Zinc prices, which had fallen by nearly 30 percent since May, shot up 8 percent after Glencore's announcement.

Glencore has been particularly badly hit because of its huge $30-billion debt load, even after the firm this month raised $2.5 billion via a share issue as part of a vast plan to rejig its finances.

Glencore has already mothballed output at two copper projects in Africa, and on Wednesday closed a platinum mine in South Africa, cutting more than 800 jobs.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today top producer glencore slashes zinc output by a third Arab Today, arab today top producer glencore slashes zinc output by a third

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today top producer glencore slashes zinc output by a third Arab Today, arab today top producer glencore slashes zinc output by a third

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Saudi witnessing a remarkable growth

GMT 09:57 2017 Saturday ,23 September

Saudi witnessing a remarkable growth
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today US-made bomb used in fatal strike

GMT 10:16 2017 Saturday ,23 September

US-made bomb used in fatal strike
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 11:29 2017 Thursday ,21 September

Lufthansa chief eyes up to 78

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday