Glencore to Cut Production at Major Copper, Cobalt Mine -- 2nd Update
19 Fevereiro 2019 - 11:49AM
Dow Jones News
By Scott Patterson
Glencore PLC plans to curb production at one of its biggest
copper and cobalt mining operations, Mutanda Mining Sarl in Congo,
according to people familiar with the matter, potentially taking a
sizable portion of two important industrial metals out of
circulation.
The company intends to cut about 2,000 workers at Mutanda,
mostly contractors, the people said. The cutback in production is
likely to be temporary as Glencore explores new copper-mining
methods for the mine,
No full-time employees will be laid off from the mine, which at
full capacity employed about 7,500 workers at the end of 2018,
including contractors, a person familiar with the matter said.
About half of the workforce cut will come from contractors whose
terms with Mutanda are expiring, the rest will come from contracts
that are being terminated, the person said.
Glencore's copper operations in Africa produced 410,000 metric
tons of copper in 2018, up 72% from 2017, and 38,000 tons of
cobalt, a 61% increase. Mutanda, its most productive Congo mine,
produced 199,000 tons of copper and 27,000 tons of cobalt last
year. That is about one-fifth of global cobalt production, making
it the world's most prolific producer of cobalt. The metal is a key
ingredient in the lithium-ion batteries that power electric
vehicles and smartphones.
Glencore in 2016 temporarily suspended mining operations at its
other Congo copper mine, Katanga Mining Ltd., amid a sharp downturn
in copper prices. That move caused copper prices to shoot higher.
Glencore halted exports of cobalt from Katanga last year after it
discovered some of the metal was radioactive. The company is
installing new technology to decontaminate the metal.
Glencore could announce further details about its plans for
Mutanda when it releases its annual results for 2018 on
Wednesday.
Write to Scott Patterson at scott.patterson@wsj.com
(END) Dow Jones Newswires
February 19, 2019 09:34 ET (14:34 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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