Glencore to slash coal exports by 15Mt

GLOBAL commodities giant Glencore will reduce its Australian coal exports by 15 million tonnes in 2015 following its recent Australia-wide coal production shutdown.
Glencore to slash coal exports by 15Mt Glencore to slash coal exports by 15Mt Glencore to slash coal exports by 15Mt Glencore to slash coal exports by 15Mt Glencore to slash coal exports by 15Mt

Image courtesy of Glencore.

Lou Caruana

The company said it planned to reduce 2015 production by 15 million tonnes to more closely align its coal output with current customer demand.

“Production initiatives will occur at a number of sites,” the company said.

“These include some underground roster changes, the scaling back of some open pit mining activities and revisions to the product portfolio with the objective of tailoring both volumes and qualities to better match current market demand.”

As well as direct operational changes Glencore will defer some projects and ensure that inventory management and blending are optimised.

“We will continue to review all our coal operations in the prevailing economic climate,” the company said in a statement.

“Regulatory approvals for projects will continue to be progressed to provide us with future optionality, but remain subject to final investment approval.”

Last month Glencore revealed plans to close down 5Mtpa of thermal coal production in South Africa and shed 1070 jobs.

The coal price downturn-triggered review into Glencore’s Optimum Coal business in the country identified that the open cut operations would need to be placed on care and maintenance.

The flagged cutbacks will also impact “large portions” of the coal processing plants and associated support services.

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