FILE PHOTO: The logo of commodities trader Glencore is pictured in front of the company's headquarters in Baar

JOHANNESBURG - This comes as Glencore reported 68 percent increase to $6.7 billion in the adjusted earnings before interest, tax, depreciation and amortization (EBITDA) and earnings before interest, and a 334 percent increase to $3.8bn in earnings before interest and taxes (EBIT) for the first half of 2017. 

Net debt fell a further $1.6bn to $13.9bn from end of 2016, strengthening its balance sheet. The net income attributable to equity holders increased to $2.5bn, up from a loss of $369m last year.

Glencore attributed its turn of fortunes to favourable fundamentals and rising prices for key commodities amid robust growth momentum in the global economy though copper, nickel and oil production was down. 

Chief executive, Ivan Glasenberg, said that the miner's efforts to reposition its balance sheet and drive further industrial asset portfolio improvements over the last twenty-four months were reflected in strong first-half financial performance. 

"Amid the best global economic growth momentum seen in recent years, our assets reported strong margins, generated by significantly better commodity prices and the favourable cost structures now embedded across the portfolio," Glasenberg said.

"As we look forward, the potential large-scale roll out of electric vehicles and energy storage systems looks set to unlock material new sources of demand for enabling underlying commodities, including copper, cobalt, zinc and nickel. Our portfolio of Tier 1 commodities underpins our ambition to create significant long-term value for Glencore shareholders."

Glencore kept its dividend unchanged at $1 billion for the year, after a near two-year hiatus, as it had announced last year that it plans to pay out a minimum of $1bn annually following a rebound in commodity prices.

 - African News Agency (ANA)