The news means the Lady Loretta zinc mine near Mt Isa will be the second Australian zinc mine to close in the space of a few months, after Hong Kong listed miner MMG revealed last week that the Century zinc mine had come to the end of its working life.
Advertisement
Glencore’s cuts in Australia, South America and Kazakhstan will remove 500,000 tons a year from mined supply, potentially tipping the market into a deficit and giving a boost to prices of the multipurpose metal.
The decision will be implemented in the current quarter, Glencore said.
Shares in the firm have fluctuated wildly amid investor fears that sinking commodity prices will affect its ability to meet outstanding debt obligations.
Glencore said in a statement: “Glencore remains positive about the medium and long term outlook for zinc, lead and silver, however we are taking a proactive approach to manage our production in response to current prices”.
Commodities prices have tumbled in recent months as producers of metals to energy struggle to curb surpluses due to slower economic expansion in China.
The company’s main listing in London saw shares tumble 29 percent on September 28 after analysts expressed worries over the pace its $10 billion debt-reduction program.
GLENCORE is set to axe 535 jobs at its zinc mines in Queensland and the Northern Territory, the company has announced.
Earlier this week, the company said its Australian coal mines will be shut down if the long downturn in commodity prices makes them unprofitable.
Advertisement
The loss of 470 jobs at Glencore’s zinc mines in north-west Queensland is a temporary, but unfortunate setback for a minerals province with strong potential for the future.
