6th Aug 2019 18:54
(Alliance News) - Glencore PLC is to halt production at the Mutanada mine in the Democratic Republic of Congo at the end of the year, following a "significant decrease" in prices for the battery metal, the Financial Times reported late Tuesday.
According to a letter to employees of the mine, the Swiss commodities miner and trader will shut down the cobalt and copper mine due to being "no longer economically viable".
Mutanda will continue production until the end of 2019, after which it is expected to be placed on "care and maintenance".
"Unfortunately due to the significant decrease in the cobalt price, increased inflation across some of our key input costs (mainly sulphuric acid) and the additional taxes imposed by the mining code the mine is no longer economically viable over the long-term," the letter said.
The Financial Times said that the price of the cobalt has fallen by more than 40% in 2019 to date due to a surge in supply from the Congo, which is the world's largest producer.
Shares in Glencore closed 1.6% lower at 231.35 pence in London, while its Johannesburg shares ended 1.4% lower at ZAR42.06 on Tuesday.
https://www.ft.com/content/8cd1fd7a-b86c-11e9-96bd-8e884d3ea203
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