Glencore's Cost Cutting Moves to Halt One Quarter of Zambian Copper Output

Bloomberg reported that Glencore’s (LSE:GLEN) decision to suspend production at its copper mines in Zambia and the Democratic Republic of Congo will cut 26 percent of the countries’ copper output. The move is part of broader measures being taken by Glencore to cut costs as weak commodity prices continue.
As quoted in the publication:

Glencore’s announcement that it will suspend copper and cobalt production at Katanga Mining Ltd. is a “major blow” to the Congolese government of Joseph Kabila, Ahmed Salim, senior associate at New York advisory firm Teneo Intelligence, said in an e-mailed response to questions. “With presidential and legislative elections slated for late 2016, the Kabila government will be extremely concerned about the fallout from worsening economic expectations and potential job losses.”
For Zambia, Glencore’s move “is a shocker,” Oliver Saasa, chief executive officer of Premier Consult Ltd., said by phone from Lusaka, the capital. “It may just be the beginning” as other mining companies consider following suit following a slump in commodities prices, he said.

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