Glencore says it will cut spending plans this year as the world's biggest commodity trader tries to protect its balance sheet from the global pandemic.
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The company will reduce capital expenses in 2020 to between $4 billion and $4.5 billion from its previous forecast of $5.5 billion. The cuts are a result of some project deferrals, lower production and falling input costs. Glencore also lowered output forecasts for metals such as zinc after operations were disrupted.
While its impact in Australia is limited, some of its global mines have been affected by the spread of Covid-19.
Glencore CEO Ivan Glasenberg they were well positioned to navigate the challenges "given our strong liquidity position and resilient business model".
Last month it said it would defer its proposed $2.6 billion dividend and will review the decision when it reports interim results later in the year.
Glencore lowered the production goals for all its commodities though its first quarter zinc output for Mount Isa was 2 percent up on the same period in 2019.
Its own sourced copper production of 43,600 tonnes was was also higher than Q1 2019 by 9400 tonnes (27%) reflecting severe flooding in Queensland last year which impacted logistics to smelting and refining operations.
SEE ALSO: Mount Isa man leads COVID-19 taskforce
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