4th Feb 2021 15:52
(Alliance News) - Glencore PLC on Wednesday said its Columbian subsidiary is going to relinquish its mining contracts back to the Columbian government after reviews concluded that they were uneconomical.
The Swiss commodities trader said Prodeco, its subsidiary, will commence the process of handing its mining contracts back to the Republic of Colombia through the National Mining Agency.
This follows numerous operational reviews, looking at cost efficiencies, conducted by both the company and the Colombian National Mining Agency. The reviews concluded that it would be "uneconomic to re-commence operations".
The mines will remain on care and maintenance until the formal process of relinquishing the contracts is complete, while the port will continue to operate in line with its obligations as a public service port, the company added.
Prodeco has re-commenced a voluntary redundancy programme and is in talks with its employees, contractors and host communities on the impact of relinquishing the titles.
Glencore shares were down 1.0% at 246.55 pence each in London on Thursday afternoon and closed 0.7% higher at ZAR50.84 in Johannesburg.
By Greg Roxburgh; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Glencore