Glencore Looks For Canadian Operational Efficiency As Zinc Competition Stiffens

Anglo-Swiss diversified mining giant Glencore (OTCPK: GLCNF) is pursuing further consolidation of its copper and zinc assets. After job cuts, a $1.5 billion impairment, and a pause of its smelting operation in the Philippines, the company is looking to implement efficiency measures for its Canadian operations.

"Our smelting and refining business continues to be under a high level of economic pressure due to challenging market conditions that have led to historically low treatment charges," Glencore's head of zinc assets, Suresh Vadnagra, said in the internal memo, according to Bloomberg's report.

The assets in focus include CEZinc, Horne copper smelter, and Canadian Copper Refinery. CEZinc, North America's second-largest zinc plant, benefits from low energy costs and proximity to U.S. markets. Still, rising competition for feedstock has squeezed the margins. The firm laid off 85 employees in Montreal last December but might need further cost reductions and ...