Glencore is set to axe 535 jobs at its zinc mines in Queensland and the Northern Territory, the company has announced.

Operations at the Lady Loretta mine, in Queensland's north west, will be suspended and production reduced at Mount Isa's George Fisher Mine and the McArthur River mine in the Northern Territory.

At the Lady Loretta mine, 242 jobs will go while 224 positions will be lost from George Fisher, and 69 at the McArthur mine.

In total, 535 jobs will be cut, about two-thirds of which are fly-in, fly-out.

The company announced today it would reduce its zinc production by a third in Australia, South America and Kazakhstan.

It said the main reason for the reduction was to preserve the value of zinc reserves in the ground at a time of low zinc and lead prices.

In a statement, the company said it remained positive about the medium and long-term outlook for zinc, lead and silver, however said it needed to manage its production in the current climate.

"This decision has not been taken lightly," the statement said.

"In the coming days we will engage with all employees and put in place support services to assist our people who may be affected as a result of these changes."

Workers have been offered voluntary redundancies and there will be opportunities for redeployment.

George Fisher Mine General Manager Chris McCleave broke the news to staff this morning.

"It's a tough day to give the news, and no doubt it's a tougher day to hear this news," he said.

"It is not an enjoyable decision that's been made, but it is the responsible thing to do to preserve the value of Mount Isa's zinc resources."

Shares in the Swiss-based commodities giant plunged 30 per cent on September 28 after an investment bank warned its stock could become "worthless" if commodity prices failed to recover.

As the company pledged to dramatically reduce its $US30 billion debt, resources analysts said Glencore would be reassessing all projects that required more spending to get off the ground.

Global downturn to blame: Palaszczuk

Premier Annastacia Palaszczuk said it was a huge blow for the community of Mount Isa.

"I think many of the members of the community will be absolutely gutted today at the decision," she told ABC North West Queensland.

"I think today is the culmination of global impacts of downturn in commodity prices which we are seeing a number of companies facing."

Ms Palaszczuk said she would speak to Mount Isa Mayor Tony McGrady today, and has asked Treasurer Curtis Pitt to speak to the Queensland Resources Council about providing assistance.

"In the past the Government has put in place flying squads which is a group of employment advisers which go into these regions and try to help these workers transition into other jobs so that is something my Government will give careful consideration to," she said.

Mount Isa Council hoped the miner would show compassion to each employee affected.

"This is an international problem that is certainly not exclusive to our region," Mr McGrady said.

"There can be no blame attached to the Australian mining industry, it is purely a decision affected by the Australian resources economy," he said.

"We can only hope that there is a resurgence in the Australian and Chinese economies."