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.
David is a New York native and holds a MS from Northwestern University's Medill School of Journalism. He received his BA in government diplomacy, majoring in...