Tinka Resources Ltd V.TK

RE:Commodity rout called...

[BenRumson]

This wll support the zinc sector of the commodity market.
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https://www.ft.com/intl/cms/s/0/13252788-6e0e-11e5-aca9-d87542bf8673.html

LONDON -- Glencore, the resources group battling falling commodity prices, is poised to make a dramatic intervention in one of its most important markets by slashing its annual production of zinc by more than a third.

The unexpected move by the UK-listed company, the world’s biggest miner and trader of zinc, will cut output by 500,000 tonnes a year and could help put a floor under the price of the metal, which has fallen to a five-year low on concerns about slowing economic growth in China.

“The main reason for the reduction is to preserve the value of Glencore’s reserves in the ground at a time of low zinc and lead prices, which do not correctly value the scarce nature of our resources,” the company said in a statement.

People close to the company said that Glencore wanted to protect its reserves and “leave them in the ground” until the price for zinc recovered. The Switzerland-based miner will restart production and feed the 500,000 tonnes of zinc back into the market once prices have risen to a level they believe better reflects the balance of supply and demand.