Shares in mining giant Glencore (LON:GLEN) shot up nearly 6 percent this morning, after the company announced plans to slash its zinc production in an effort to cut costs.
Glencore shares have fallen nearly 30% over the last few months. To counteract this, the company are cutting 500,000 tonnes of zinc production; the equivalent 4% of the world’s total supply. They will be closing their Lady Loretta mine in Australia and Iscaycruz mine in Peru.
Glencore’s announcement sent both its share price and the price of zinc up 6%.
In a statement, Glencore said: “We remain positive about the medium and long term outlook for zinc, lead and silver, however we are taking a proactive approach to manage our production in response to current prices.”
Glencore is currently trading up 6.7 percent, at 128.84 pence per share. (0938GMT)
