GLNCY Glencore Plc (PK)

By Scott Patterson 

Glencore PLC said late Tuesday it had entered a long-term deal to deliver silver from its Antamina mine in Peru to Silver Wheaton Corp. in exchange for $900 million.

The deal is a key part of the $10 billion debt reduction plan Glencore unveiled in September. The Swiss miner and commodities trader is scrambling to pare down its nearly $30 billion in debt amid concerns that the prices for the commodities it mines and sells could continue to fall sharply.

The "streaming" deal is expected to be made final by the end of November, Glencore said. The company said it would deliver 34% of the silver produced by the Antamina mine, which is equivalent to its stake in the mine.

On top of the $900 million payment, Silver Wheaton will pay 20% of the spot price of silver at the time of delivery.

Glencore announced in early September a raft of measures to safeguard its credit rating, promising to cut net debt by a third to about $20 billion by the end of next year. But its stock has gyrated wildly since then, falling 29% in one day on Sept. 28 and then rising more than 70% since then.

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(END) Dow Jones Newswires

November 03, 2015 18:24 ET (23:24 GMT)

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