GENEVA – Commodities giant Glencore will resume paying a dividend worth $1 billion after announcing that its debt-reduction plans are far ahead of pace.
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The Anglo-Swiss company says it's reinstating the dividend after having sold off assets worth $6.3 billion, over three times its previous guidance.
Only a year ago, Glencore was facing questions about its ability to cope with slumping commodity prices. It responded by selling off assets and cutting production and costs. The company said 2016 has been "challenging."
CEO Ivan Glasenberg said Glencore had delivered on its commitments to cut its debt and strengthen its balance sheet, and now "can look forward to the future with confidence."
Glencore has about 150 mining and metallurgical sites and markets over 90 commodities including copper, zinc and nickel to industrial customers.