Glencore to slash zinc production by a third

Commodities trading and mining giant Glencore is slashing worldwide production of zinc – widely used for galvanizing in manufacturing industry across the West Midlands – as it struggles with falling prices.

The world's biggest producer of the metal, Glencore revealed this morning it is cutting global production by around a third, or 500,000 tons a year. It is though 1,600 jobs could be lost across its mining sites in Australia, South America and Kazakhstan as a result.

The company said the move was to preserve the value of its existing reserves at a time of low zinc and lead prices.

Glencore said the move would cut fourth quarter production this year by around 100,000 tons.

It will suspend operations at its Lady Loretta mine in Australia and at Iscaycruz in Peru. Production would be cut at George Fisher and McArthur River in Australia and in Kazakhstan.

In a statement the company said: "Glencore remains positive about the medium and long term outlook for zinc, lead and silver prices. This decision will ensure that our zinc operations are sustainable well into the future, providing jobs in the communities where we operate and returns to shareholders.

"These changes, although temporary, will unfortunately affect employees at our operations. This decision has not been taken lightly. In the coming days we will engage with all employees and put in place support services to assist people who may be affected as a result of these changes."