Glencore’s Xstrata (GLEN), Global Mining Giant, Is Expected To Write Down Approximately $7 Billion In Assets

on August 19 2013 9:29 AM
Glencore
Glencore is taking a big write-down for first-half 2013. REUTERS

Global mining giant Glencore Xstrata PLC (LON:GLEN) is planning to write down the value of some of its assets by as much as $7 billion because of falling prices for the minerals it produces, Reuters reports Monday.

Analysts say the write-down will probably be in the range of $5 billion to $7 billion. The Anglo-Swiss mining giant, is one of the world’s largest global diversified natural resources companies, with operations comprising 150 mining sites, offshore oil production assets and agricultural facilities.

The write-down is expected to be included in the company's first-half results, which will be released Tuesday.

Part of the reason for the write-down is flagging nickel prices, which is affecting Xstrata’s $5 billion Koniambo operation in New Caledonia, an island in the southwest Pacific.

Since the start of the year, the mining industry has taking billions of dollars in combined write-downs.

In January, leading global mining and metals company Rio Tinto PLC (NYSE:RIO) reported a write-down of $14 billion in its underperforming Mozambican coal and Canadian aluminum operations.

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