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| Glencore raises debt reduction target | Glencore raises debt reduction target |
| (35 minutes later) | |
| Mining giant Glencore has increased its target for debt reduction and cut spending plans in the face of a highly uncertain outlook for commodity prices. | Mining giant Glencore has increased its target for debt reduction and cut spending plans in the face of a highly uncertain outlook for commodity prices. |
| It has now raised its debt reduction plan to $13bn from the previous target of $10.2bn. | It has now raised its debt reduction plan to $13bn from the previous target of $10.2bn. |
| As a result, Glencore aims to cut its debts to $18bn-$19bn (£11.8bn-£12.5bn) by the end of 2016, down from a previous target of "low $20s billion". | |
| Earlier this week, rival Anglo American announced major restructuring plans. | Earlier this week, rival Anglo American announced major restructuring plans. |
| Anglo said it would sell huge chunks of its business and shrink its workforce by nearly two-thirds. | Anglo said it would sell huge chunks of its business and shrink its workforce by nearly two-thirds. |
| Price crash | Price crash |
| Glencore also announced it would cut its capital expenditure plans to $5.7bn for 2015 from $6bn, and to $3.8bn in 2016 from $5bn. | Glencore also announced it would cut its capital expenditure plans to $5.7bn for 2015 from $6bn, and to $3.8bn in 2016 from $5bn. |
| The mining sector has come under pressure because slowing global demand for raw materials - largely thanks to a slowdown in economic growth in China - has seen commodity prices fall to their lowest level in several years. | The mining sector has come under pressure because slowing global demand for raw materials - largely thanks to a slowdown in economic growth in China - has seen commodity prices fall to their lowest level in several years. |
| The price of iron ore is at a 10-year low and oil at a seven-year low. | The price of iron ore is at a 10-year low and oil at a seven-year low. |
| Glencore is currently trying to reduce $30bn of debt, created by its ambitious 2013 takeover of Xstrata. That deal added dozens of mines in numerous countries to the commodity trader's business leaving it as one of the world's biggest miners and traders of the products of those mines. | Glencore is currently trying to reduce $30bn of debt, created by its ambitious 2013 takeover of Xstrata. That deal added dozens of mines in numerous countries to the commodity trader's business leaving it as one of the world's biggest miners and traders of the products of those mines. |
| It has so far cut production at some of its mines and has suspended dividend payments to shareholders. | It has so far cut production at some of its mines and has suspended dividend payments to shareholders. |
| Last month, Glencore said it had started the sales process for two of its copper mines in Australia and Chile. | Last month, Glencore said it had started the sales process for two of its copper mines in Australia and Chile. |