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Glencore extends production cuts to aid turnaround
[ZURICH] Commodities giant Glencore has extended production cuts across key sectors as part of its strategy to reign in debt and offset the damage from slumping prices, the company said Thursday.
First half results put zinc output at 249,000 metric tons, down 31 per cent compared to the same period last year. Coal was down 14 per cent (58.8 million tonnes) and copper fell four per cent to 703,000 tonnes.
Nickel was the only commodity where production increased, with Glencore reporting a 17 per cent rise to 57,100 tonnes.
The Switzerland-based company has been waging an aggressive battle against its once towering debt, selling assets, closing unproductive operations worldwide, and cutting dividends to investors.
Maverick chief executive Ivan Glasenberg launched the cost-cutting drive last year in response to the rout on commodities prices sparked partly by the slowdown in China.
A daunting US$30 billion debt burden in 2015 made Glencore one of the worst performers on the London exchange last year.
But the turnaround strategy has swayed markets with Glencore's share price more than doubling through 2016.
Its share price was largely flat through early Thursday at 195.05 pence.