Glencore flags sale of a few Australia, Chile assets

Trading in shares of Glencore has been halted in Hong Kong pending release of information on certain assets in Australia and Chile, the Hong Kong Stock Exchange said Monday. Shares in the firm, down more than 60 per cent this year, have fluctuated wildly amid investor fears that sinking commodity prices will affect its ability to meet outstanding debt obligations.

The miner said the halt was required ahead of the sales, which have been expected for several months, particularly after Glencore announced plans to reduce its debt by $US10 billion in early September.

ZINC prices have surged 12 per cent to a and other base metals also rose strongly after Glencore said it would cut its zinc output by a third. Glencore has previously said it is looking to sell a minority stake in its agricultural business.

The trading and mining giant’s Australian spokesman had no immediate comment on the assets that were to be sold. Its Chilean operations include stakes in three copper mines and a hydro-electricity project, apart from investments in ports.

Zinc ingot Rs 114-120, Nickel plate (4×4) Rs 909-914, Gun metal scrap Rs 227, Bell metal scrap Rs 229, Copper mixed scrap Rs 370, Chadri deshi Rs 295.

Weak commodities prices prompted Glencore to cut 500,000 tonnes of zinc production, or 4 percent of global supply on Friday, a move that sent zinc prices rallying about 10 percent.