Glencore adopts cost-cutting measures
By GIFT NDOLWANE
JOHANNESBURG, (CAJ News) – GLENCORE, one of the world’s largest global diversified natural resource companies, is planning to offload 2,5 billion in share sales while shedding assets in a bid to cut debt.
The Anglo-Swiss company noted the announcement made by Katanga Mining (in the Democratic Republic of Congo) over the weekend that its management had commenced a review of its business, including operations and expenses, in light of the challenging environment for commodities.
A similar review at Mopani Copper Mines also in Zambia has also commenced.This will include the suspension of production at Katanga and Mopani for 18 months up until the completion of the expansionary and upgrade projects. This includes the whole ore leach at Katanga and the new shafts and concentrator at Mopani.
A suspension of operations will remove approximately 400,000 tonnes of copper cathode from the market.The expansionary and upgrade programs will provide a material reduction in overall operating costs at both operations.
Once complete, the programs are expected to reduce C1 costs at Katanga and Mopani to c.$1.65lb and c.$1.70lb respectively from more than c.$2.50lb today. Glencore will continue to fund the expansionary and upgrade projects at both operations.Mutanda Mining continues to perform well, producing above name plate capacity at a C1 cost of $1.33lb.
– CAJ News
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