Coal strategy reversed in the face of shareholder scepticism
Commodities giant Glencore has abandoned plans to spin off its coal business, in the face of widespread shareholder opposition.The miner will instead hold onto all its coal assets, in order to fund new investments in copper, and to increase shareholder returns. Glencore first announced plans to divest its coal business last year, after taking over Elk Valley Resources , Teck 's steelmaking coal business.The deal, which valued Elk Valley at US$7.
, slumped 33% to $6.3 billion, hit by a decline in prices for key commodities.Glencore's results were otherwise slightly weaker than expected. of US$6.3 billion was down 33% year on year on lower commodity prices, and was 4% weaker than analyst expectations.The coal business was itself a a drag, with a US$1 billion impairment charge related to the South African thermal coal assets on lower thermal prices as well as the decision to place Koniambo on care and maintenance.Glencore's financial results noted "lower thermal coal price assumptions and the ongoing export logistics challenges in South Africa".
Glencore Elk Valley Resources Gary Nagle Teck Russian Ukraine
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