MINING and commodities giant Glencore yesterday announced it would be cutting capital expenditure for the second half of the year, reducing its previous upper estimate by $800m (£513m) to $6bn.
Its half-year production report also revealed that the value of its oil operation in Chad could fall by as much as $790m from its previous projection as it “significantly” reduced the number of rigs in operation.
Glencore’s reduction in oil revenues will come despite 68 per cent oil production gains made compared with the first half last year.
While the firm’s production of zinc and ferrochrome also increased, lower yields were achieved in both copper and coal, with nickel production remaining broadly constant.
Production of copper, Glencore’s highest-earning commodity, fell by three per cent to 730,900 tonnes, although this was offset by single-digit growth in African copper.
Coal production was down by four per cent to 68.7m tonnes as it was scaled back due to market conditions.
The decline in the price of oil and commodities such as copper as well as China’s reduction in the value of the renminbi have combined in recent weeks to hobble the value of the company’s shares, which yesterday traded at a low of 179p. Glencore stocks closed at 176.8p.