(MENAFN- AFP) Mining and commodities giant Glencore, weighed down by debt as it struggles against a commodity price crash, announced Friday it is slashing its worldwide output of zinc by one third.
"The main reason for the reduction is to preserve the value of Glencore's reserves in the ground at a time of low zinc and lead prices, which do not correctly value the scarce nature of our resources," the miner said in a statement.
Glencore, which claims to be one of the world's largest miners and producers of zinc, said it was slashing its zinc production by 500,000 tonnes across its operations in Australia, South America and Kazakhstan.
The company said its operations at Lady Loretta in Australia and Iscaycruz in Peru would be suspended and operations at George Fisher and McArthur River in Australia and various mine operations in Kazakhstan would reduce production levels.
"These changes, which represent around one-third of Glencore's annual zinc production, will reduce fourth quarter 2015 mine production by approximately 100,000 tonnes of contained zinc metal," Glencore said.
The Swiss-based company, which employs around 181,000 people worldwide, acknowledged that "these changes, although temporary, will unfortunately affect employees at our operations."
A company spokesman told AFP that around "1,540 people will unfortunately lose their jobs."
"This decision has not been taken lightly," the company said.
It said it in coming days it would "engage with all employees" and provide support for those affected by the changes.
Glencore meanwhile insisted the decision would "ensure that our zinc operations are sustainable well into the future, providing jobs in the communities where we operate and returns to shareholders."
"Glencore remains positive about the medium and long term outlook for zinc, lead and silver prices," it said.
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