LONDON, March 22 (Reuters) – A growing group of Glencore investors are keen for it to keep mining coal instead of spinning out the soon-to-be enlarged unit, with one eye on its financial outlook and another on the environmental benefits of keeping the fuel in-house.
Echoing a demand last week by activist Tribeca Investment Partners, investors said the polluting fossil fuel would be a lucrative option – for a decade or two at least – even as it is phased out in favour of renewable energy.
The Swiss-based miner and trader is set to see its coal unit grow sharply after it completes a $6.9 billion deal to buy the majority of Canadian miner Teck’s, but said it plans to list the combined assets separately in New York. Glencore is already a top producer of thermal coal with output of around 110 million tonnes a year, and also has coking coal assets.
By buying Teck’s business, in a deal set to close by the third quarter this year, it will add 20 million tons of annual steelmaking coal capacity and create a powerhouse that analysts say should generate $5-$6 billion a year in free cash flow.
For the rest of this article: https://www.reuters.com/markets/commodities/more-investors-push-glencore-keep-coal-post-teck-deal-2024-03-22/