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Australia's biggest coal miner moves to cap global output

Author: Cole Latimer, The Sydney Morning Herald, Published on: 22 February 2019

20 February 2019

Australia's largest coal miner Glencore will cap its global coal output at current levels in the wake of pressure from activist shareholders as part of a pivot towards minerals used in renewable technologies.

..."We aim to prioritise capital investment to grow production of commodities essential to the energy and mobility transition and to limit our coal production capacity broadly to current levels," the company said as part of its results announcement.

...Glencore said it would examine its membership of trade associations to ensure those groups aligned with the Paris climate agreement and Paris goals.

..."To deliver a strong investment case to our shareholders, we must invest in assets that will be resilient to regulatory, physical and operational risks related to climate change," a company statement said.

...Emma Herd, chief executive of the Investor Group on Climate Change, said: "Glencore's announcement is a significant step for the mining sector with potentially wide-reaching implications ... Investors will now be looking for more companies in the sector to align their business decisions with the Paris Agreement".

...Anne Simpson chair of the steering committee of Climate Action 100+, representing major investors that are pushing for emissions cuts. "Keeping global warming to well below two degrees demands bold and urgent action from the world's largest greenhouse gas emitters."

The Australian Centre for Corporate Responsibility, which is part of a global network of activist investors, said the decision was part of a shift away from coal.

..."This announcement will also reverberate around state parliaments, and in Canberra. Governments can no longer budget on the infinite flow of revenues from coal exports."

[Companies also mentioned are Rio Tinto & Adani]

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Related companies: Glencore