Glencore consolidates coal assets into a single Australian entity

Glencore announced on Thursday that it has restructured the coal business, combining its newly acquired Canadian mines under a single entity run from Australia. This makes it easier to manage.

The Swiss miner and trader purchased Canadian miner Teck Resources’ steelmaking coal assets at a cost of $6.9 billion. Initially, the company had outlined plans to spin off its entire coal portfolio. This plan was abandoned.

Glencore's spokesperson stated that "combined with the acquisition EVR, we began a process of restructuring the coal business to align it with management structure since the coal industrial assets were managed outside of Australia."

Glencore owns mines of coal in South Africa. It is one of the world's largest producers and exporters, with a mining capacity of 99,6 million tons of thermal coal in 2024. This compares to 106.1 millions in 2023.

Glencore backed down from its plans to spin-off coal assets last year after it secured backing from a large majority of investors who expect lucrative earnings from fossil fuel.

Glencore stated that this process had already begun when it acquired Teck's assets. It was decided to continue the restructuring, and consolidate the coal business in Australia under one unit.

The spokesperson stated, "We decided to complete the restructuring despite shareholder engagement which resulted in a decision to not proceed with the spin off." Clara Denina reported from London; Felix Njini wrote in Johannesburg; Susan Fenton, Mark Potter and Mark Potter edited.

(source: Reuters)