Arab Today, arab today top producer glencore slashes zinc output by a third
Last Updated : GMT 00:40:13
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.

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 Ideen Belmahdy happy to be part of “ Fashion Star”

GMT 17:00 2017 Sunday ,26 February

Ideen Belmahdy happy to be part of “ Fashion Star”
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 14:48 2017 Sunday ,26 February

$100 billion wasted trying to beat the market

GMT 12:06 2017 Sunday ,26 February

Britain banks on robots, AI to boost growth

GMT 12:00 2017 Sunday ,26 February

China to allow more IPOs to attract capital

GMT 06:31 2017 Sunday ,26 February

Consumer prices up in Canada
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre
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