Glencore losses deepen on massive write-offs

ZURICH: Anglo-Swiss mining giant Glencore said Tuesday it plunged deeper into the red last year, hit by the "extraordinary" challenge of Covid-19 and massive write-offs, especially on a mine closure in Zambia.

The company said it had a 2020 net loss of $1.9 billion after writing off assets worth $5.9 billion, compared with a 2019 net loss of $404 million following writedowns costing $2.4 billion.

Sales tumbled 34 percent to $142 billion, it added.

The coronavirus pandemic and the impact on the global economy amounted to an "extraordinary" challenge for the company which mines and trades basic raw materials globally.

Glencore boss Ivan Glasenberg said in a statement the global economy was in recession in the first half of 2020, followed by a strong rebound in the second half.

The trading arm of the company saw operating profit soar 41 percent to $3.3 billion, reflecting the huge volatility of metal and oil prices.

However, the mining arm reported an operating profit fall of 13 percent to $7.8 billion, it said.