In this aerial photo taken in Newcastle, Australia, a stacker-reclaimer at the Newcastle Coal Terminal creates a rainbow of water as it works next to a coal stockpile.
Brendan Thorne | Bloomberg | Getty Images
Glencore said on Wednesday it would not divest its coal business, after winning support from a majority of investors who see the fossil fuel bringing a boost after the commodities giant’s recent acquisition of Teck Resources’ coking coal assets. huge profits.
Investors expect this to continue to boost Glencore’s profits as a result of a lack of investment in new coal assets and the recognition that coal will remain part of the global energy mix for years to come, likely to support tight supplies and high prices.
The London-listed miner has been lobbying with investors over whether to retain the combined coal assets or spin them off after completing a deal last month to acquire most of Teck Steel’s steelmaking coal business.
Glencore chairman Kalidas Madhavpeddi said retaining the coal assets “provides the lowest-risk path to creating value for Glencore shareholders”.
Glencore reported a net loss attributable to shareholders of $233 million after recognizing $1.7 billion in significant items, including approximately $1 billion in impairment charges.
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