Shares in mining giant Glencore (LON:GLEN) have risen by 10 percent this morning, as the company increased its target for debt reduction and cut spending plans further in order to keep afloat in tough market conditions.
Glencore is one of a number of mining companies going through restructuring in the light of uncertain commodity prices and has now raised its debt reduction plan to $13 billion, up from the $10.2 billion previously.
Glencore now plans to cut debt to around $18 billion by the end of 2016, down from its previous target, with capital expenditure plans also being cut.
Slowing global demand for raw materials has led to pressure in the mining sector, with rival Anglo American announcing maker restructuring plans earlier this week. Commodity prices are now at their lowest level for several years, with iron ore at a 10-year low and oil at a seven-year low. Last month, Glencore announced the closure of two of its larger mines.
The market has reacted well to the announcement, with Glencore currently trading up 9.37 percent at 90.91 pence per share. (0840GMT)