Mining giant Glencore plans to shed up to 535 jobs at its Australian operations after announcing it will cut its global zinc production by a third.
Around 335 Glencore employees, along with another 200 contractor positions, are likely to be affected by the decision.
The Switzerland-based company said on Friday it will reduce zinc mine production across its operations in Australia, South America and Kazakhstan by around 500,000 tonnes a year.
In Australia, Glencore's operations at the Lady Loretta mine in Queensland will be suspended, while production will be reduced at the George Fisher mine in Queensland and McArthur River mine in the Northern Territory.
The production cuts will be implemented in the current quarter, Glencore said.
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"Glencore believes that current prices do not correctly value the scarcity of our zinc resources. Our finite resources are valuable and reducing production, in response to current prices, preserves value and optionality for all stakeholders," it said in a statement.
The company said it is undertaking a statutory consultation process with its employees.
Glencore's financial health has been under immense scrutiny in recent weeks due to its $US29 billion in debt, and the increasing contributions to earnings from its relatively unknown commodities trading operations.
Shares in the firm have fluctuated wildly amid investor fears that sinking commodity prices will affect its ability to meet outstanding debt obligations.
Glencore shares have plunged more than 60 per cent this year.
Earlier this week, the company said its Australian coal mines will be shut down if the long downturn in commodity prices makes them unprofitable.
