9th Oct 2015 05:34
LONDON (Alliance News) - Multi-commodities miner and trading house Glencore PLC on Friday announced a 500,000 tonne per year reduction of contained zinc metal mine production across its operations in Australia, South America and Kazakhstan, in order to preserve the value of its reserves in the ground "at a time of low zinc and lead prices".
This represents around a third of Glencore's annual zinc production, it said, and will reduce fourth quarter 2015 mine production by around 100,000 tonnes of contained zinc metal.
The FTSE 100 firm will suspend its operations at Lady Loretta in Australia and at Isaycruz in Peru, and will reduce operations at George Fisher and McArthur River in Australia, as well as various mine operations in Kazakhstan.
Glencore said the decision was "not been taken lightly", and it will engage with all employees in coming days to help assist its employees who will be hit by the reduction.
"Glencore remains positive about the medium and long term outlook for zinc, lead and silver prices. This decision will ensure that our zinc operations are sustainable well into the future, providing jobs in the communities where we operate and returns to shareholders," the company said in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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