NEWS
IRON and STEEL   Coal  

Glencore is looking lonely as rivals look to abandon coal

Glencore Plc is cutting an increasingly isolated figure as a major coal miner as one by one its biggest rivals look to abandon the most polluting fuel.

Russian steelmaker Evraz Plc said Tuesday it was considering options for demerging its coking coal business, five days after Vale took a first step to exiting the fossil fuel. Nearly every other major miner is the process of walking away from thermal coal, used in power stations.

The world’s biggest miners have been rethinking their thermal coal businesses as more investors shun exposure amid increasing concerns about carbon emissions and global warming. Rio Tinto Group has already sold out, while BHP Group and Anglo American Plc are in the process of exiting, though both so far remain committed to steelmaking ingredient coking coal.

Still, as others exit coal, opportunities remain for holdouts such as Glencore.

“Coal is in long-term decline; there’s a very good reason people are looking to exit,” said Ben Davis, an analyst at Liberum Capital. “But in the meantime Glencore is in an excellent position to manage supply and make abnormal profits with so little investment in the market.”

Coal accounts for about a third of Glencore’s earnings and vies with copper as the biggest source of the commodity giant’s profits.

Carbon target

Instead of exiting coal, Glencore has committed to run down its assets by 2050 and in doing so become carbon neutral. That pledge includes so-called scope 3 emissions, produced when customers burn or process the materials the company mines.

The target sets Glencore apart from BHP, Rio Tinto, Vale and Anglo American, which will struggle to curb scope 3 emissions because their vast iron ore operations supply steelmakers, one of the most polluting industries.

Should that approach fail to win over investors, Glencore’s outgoing Chief Executive Officer Ivan Glasenberg has said he’ll support his anointed successor, Gary Nagle, in spinning off its coal business.

“I’ll support him in anything that creates value for shareholders,” Glasenberg said in December.

News No: 10089
Date: 2021/01/29 - 14:35
News Source: Mining.com

carbon  Ivan Glasenberg  Russian steelmaker Evraz Plc  coal  Glencore Plc 

Comments:

Leave a Comment:

   
   
   
 

Vale invests in Boston Metal, eyeing carbon-free steel

Vale has paid $6 million for a minority stake in the Boston Electrometallurgical Company (Boston Metal) as part of efforts to produce steel without carbon emissions, according to a statement on Tuesday.
 

The possible Chinese coal link in Tesla’s Bitcoin binge

There’s a pretty good chance that any new Bitcoin generated after the cryptocurrency’s Elon Musk-aided surge toward $50,000 will be sourced using cheap coal power in China’s Xinjiang.
 

As Glencore leaves Colombia, the country starts its energy transition

Colombia’s Ministry of Energy and Mines announced a new project that aims at taking news steps towards decarbonizing the country’s electrical grid.
 

Active, abandoned coal mines emit more methane than previously thought

Methane emissions from coal mines are approximately 50% higher than previously estimated, according to a recent study by researchers at the Pacific Northwest National Laboratory, the US Environmental Protection Agency, Raven Ridge Resources and Ruby Canyon Engineering.
 

Coal wins curious reprieve in Biden’s assault on climate change

President Joe Biden enlisted the entire US government in the fight against climate change on Wednesday, even telling the Central Intelligence Agency to consider global warming a national security threat.
 

Biden poised to freeze oil and coal leasing on federal land

President Joe Biden is poised to suspend the sale of oil and gas leases on federal land, which accounts for about 10% of US supplies, according to four people familiar with the matter.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners