Swiss mining giant Glencore drops plan to exit coal / Photo: DAVID GRAY - AFP/File
-
Ukraine war and climate stalemate loom over G20 summit
-
Ukraine fires first US long-range missiles into Russia
-
Retiring Nadal to play singles for Spain against Netherlands in Davis Cup
-
Rain ruins Sri Lanka's final ODI against New Zealand
-
Stocks sink on fears of Ukraine-Russia escalation
-
Hendrikse brothers start for South Africa against Wales
-
Macron tells Xi he shares desire for 'durable peace' in Ukraine
-
Ruthless Japan beat China to move to brink of World Cup qualification
-
French farmers threaten 'chaos' over proposed EU-Mercosur deal
-
Brazil arrests G20 guards over alleged 2022 Lula assassination plot
-
China's Xi urges 'strategic' ties in talks with Germany's Scholz
-
Raducanu gives Britain lead on Slovakia in BJK Cup semis
-
Russia says Ukraine fired first US-long range missiles
-
COP29 negotiators strive for deal after G20 'marching orders'
-
Walmart lifts full-year forecast after strong Q3
-
British farmers protest in London over inheritance tax change
-
NATO holds large Arctic exercises in Russia's backyard
-
Trouble brews in India's Manipur state
-
Son of Norwegian princess arrested on suspicion of rape
-
Romanian court says 'irregularities' in influencer Andrew Tate's indictment
-
Iran faces fresh censure over lack of cooperation at UN nuclear meeting
-
Despondency and defiance as 45 Hong Kong campaigners jailed
-
Scholar, lawmakers and journalist among Hong Kongers jailed
-
European stocks slide on fears of Russia-Ukraine escalation
-
Police break up Georgia vote protest as president mounts court challenge
-
Spain royals visit flood epicentre after chaotic trip
-
France's Gisele Pelicot says 'macho' society must change attitude on rape
-
G20 leaders talk climate, wars -- and brace for Trump's return
-
US lawmaker accuses Azerbaijan in near 'assault' at COP29
-
Tuchel's England have 'tools' to win World Cup, says Carsley
-
Federer hails 'historic' Nadal ahead of imminent retirement
-
Ukraine vows no surrender, Kremlin issues nuke threat on 1,000th day of war
-
Novo Nordisk's obesity drug Wegovy goes on sale in China
-
Spain royals to visit flood epicentre after chaotic trip: media
-
French farmers step up protests against EU-Mercosur deal
-
Rose says Europe Ryder Cup stars play 'for the badge' not money
-
Negotiators seek to break COP29 impasse after G20 'marching orders'
-
Burst dike leaves Filipino farmers under water
-
Markets rally after US bounce as Nvidia comes into focus
-
Crisis-hit Thyssenkrupp books another hefty annual loss
-
US envoy in Lebanon for talks on halting Israel-Hezbollah war
-
India to send 5,000 extra troops to quell Manipur unrest
-
Sex, drugs and gritty reality on Prague's underworld tours
-
Farmers descend on London to overturn inheritance tax change
-
Clippers upset Warriors, Lillard saves Bucks
-
Acquitted 'Hong Kong 47' defendant sees freedom as responsibility
-
Floods strike thousands of houses in northern Philippines
-
Illegal farm fires fuel Indian capital's smog misery
-
SpaceX set for Starship's next flight, Trump expected to attend
-
Texans cruise as Cowboys crisis deepens
NYSE - LSE
| NGG | 0.55% | 63.25 | $ | |
| RIO | -0.35% | 61.903 | $ | |
| SCS | -1.07% | 13.06 | $ | |
| CMSC | -0.02% | 24.62 | $ | |
| RBGPF | -0.74% | 59.75 | $ | |
| RYCEF | 1.15% | 6.93 | $ | |
| AZN | 0.33% | 63.6 | $ | |
| BCE | -0.29% | 27.15 | $ | |
| BP | -1.26% | 29.055 | $ | |
| CMSD | -0.08% | 24.37 | $ | |
| BCC | -1.29% | 139.74 | $ | |
| BTI | -0.18% | 36.615 | $ | |
| GSK | -0.85% | 33.405 | $ | |
| VOD | -0.56% | 8.87 | $ | |
| JRI | 0% | 13.23 | $ | |
| RELX | -0.02% | 45.03 | $ |
Swiss mining giant Glencore drops plan to exit coal
Swiss commodities giant Glencore announced Wednesday that it had decided against spinning off its coal business for now after consulting shareholders who view the polluting fossil fuel as a cash-generating activity.
Glencore completed its takeover of the steelmaking coal unit of Teck Resources in July following a protracted battle over the business with the Canadian company.
The Swiss mining and commodities trading group had considered merging the newly acquired business, Elk Valley Resources, with its own coal activities and spinning it off.
But Glencore said that after consulting its shareholders, most expressed a preference for retaining the coal and carbon steel materials business.
"Following extensive consultation with our shareholders, whose views were very clear, and our own analysis, the Board believes retention offers the lowest risk pathway to create value for Glencore shareholders today," chairman Kalidas Madhavpeddi said.
"The expected cash generative capacity of the coal and carbon steel materials business significantly enhances the quality of our portfolio," Madhavpeddi added in a statement.
The company said shareholders preferred to keep the coal business "primarily on the basis that retention should enhance Glencore's cash generating capacity to fund opportunities in our transition metals portfolio" such as copper.
They also concluded that it would "accelerate and optimise the return of excess cash flows to shareholders".
Oil, gas and coal companies are under pressure to transition away from fossil fuels, the biggest contributor to climate change.
While Glencore's Australian rival Rio Tinto and British group Anglo American are exiting coal, the Swiss company has a "managed decline" strategy to ensure a "responsible" phase out its coal operations.
Glencore said Wednesday that while it has decided to keep coal, its board "preserves the option to consider a demerger of all or part of this business in the future if circumstances change".
Separately, Glencore posted a $233-million loss for the first half of the year, after earning $4.6 billion over the same period last year, as commodity prices fell, "particularly thermal coal".
O.Brown--AT
