Glencore takes aim at miners flooding the market
PERTH (miningweekly.com) – Diversified miner Glencore this week took aim at miners flooding the commodity markets, with coal chief Peter Freyberg implying that it was irresponsible.
Speaking at a Mining Club event in Melbourne, Freyberg noted that while Glencore operated some of the most efficient and low-cost coal mines in Australia, the company had not been immune from the recent downturn in market conditions.
Glencore recently announced that it would reduce its 2015 coal exports by some 15-million tonnes, while halting a $7-billion investment into the Wandoan coal project, in Queensland, which would have seen the addition of about 22-million tonnes a year of coal.
“Our installed capacity, after our Claremont acquisition last year, was programmed to run at close to 110-million tonnes. But the market doesn’t need all this coal. So we’ve cut,” Freyberg said.
“Simply put, our decision to remove volume is the responsible thing to do. We will not push incremental tonnes into markets that don’t want them or need them. Doing so would force prices down further,” he added.
Instead, Freyberg noted that Glencore would look at assets and opportunities to position the company for the future.
“These include bolt-ons, synergy plays and option building opportunities. This is a good time in the cycle for this, but we will only do it at the right price.”
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