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UPDATE 1-Glencore steps up debt-reduction plan, reports drop in copper output

Published 2016-02-11, 02:56 a/m
© Reuters. UPDATE 1-Glencore steps up debt-reduction plan, reports drop in copper output
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By Eric Onstad
LONDON, Feb 11 (Reuters) - Glencore GLEN.L has taken
another step to reduce its debt by selling $500 million of
future precious metals output and reported a drop in production
of its most lucrative product, copper.
The Swiss-based mining and trading company said overnight
that it had agreed to sell future precious metals production
from its Antapaccay mine in southern Peru to Toronto-based
Franco-Nevada FNV.TO
The Antapaccay deal follows Glencore's agreement in November
to sell future silver output to Silver Wheaton Minerals SLW.TO
for $900 million in cash.
Glencore reported on Thursday that fourth-quarter copper
output fell 5.7 percent to 374,700 tonnes after it shut down
mines to counter sliding prices of the metal widely used in
power and construction.
The company announced plans last September to suspend
400,000 tonnes of copper output at its Katanga Mining KAT.TO
unit in Democratic Republic of Congo and at Mopani Copper Mines
in Zambia over an 18-month period.
The moves were part of efforts to regain the confidence of
investors after Glencore came under pressure to cut net debt of
about $30 billion -- one of the highest debt piles in the sector
-- as prices for commodities such as copper and coal hit
multi-year lows.

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