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Glencore outlines plan to slowly exit coal

December 08, 2020

Sydney Morning Herald:

Glencore, one of the world’s biggest coal miners, has forecast its global output will fall by more than 25 per cent but its Australian mines will be among the last to close.

Bowing to pressure from investors to set a net-zero emissions goal by 2050, the Anglo-Swiss giant outlined a new goal to achieve a 40 per cent reduction of greenhouse emissions related to its mines by 2035, based on 2019 levels. 

Tim Buckley, a director at the Institute for Energy Economics and Financial Analysis, said plans to reduce output came as the price of Newcastle coal had rallied for the past couple of months. It recently topped $US70 a tonne, up from the mid-40s in September. 

“The flight of capital we’re seeing for coal supplies do not necessarily mean lower coal prices at all,” he said, adding “demand is not going away” just yet.

Mr Buckley said that many of the company’s minerals – such as cobalt, zinc, and copper – would likely expand as demand for electric vehicles and other storage devices grow. That shift would if anything, put greater pressure on Glencore’s coal division to meet carbon reduction efforts. 

[Petter Hannam and Nick Toscano]

More: Glencore takes axe to coal targets but says Australia will be spared

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