Mining and trading company Glencore on Thursday increased its net debt reduction target and deepened its capital spending cuts as it fights for survival in the face of low commodity prices.
Firm increases debt reduction target, deepens spending cuts
Glencore has come under pressure from investors and ratings agencies to cut its net debt of $30 billion, one of the highest in the industry, as prices for its key products copper and coal sank to multi-year lows.
The logo of commodities trader Glencore is pictured in front of the company's headquarters in Baar, Switzerland, September 30, 2015. REUTERS/Arnd Wiegmann
The London-listed company said it now targets net debt of $18 billion to $19 billion by the end of 2016, from a previous target of $20 billion.
"Today we show significant delivery on those commitments, with $8.7 billion achieved to date, and are able to announce an increase in our net debt reduction target measures," Chief Executive Ivan Glasenberg said in a statement.
Swiss-based Glencore cut its capital expenditure for 2015 to $5.7 billion from $6 billion. The spending is seen falling to $3.8 billion in 2016 from a previous estimate of $5 billion.
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