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Glencore buys the interests of its affiliates in one of the hottest coal mines in the world, which is a recent alliance between companies that are being manipulated and forced by banks and investors.
In the sale, the London-based miner and retailer has agreed to acquire 66.6% of Cerrejón in Colombia already Anglo American and BHP at a cost of $ 294m each. Glencore expects them to return their money within two years.
The agreement was signed a new change of ownership in the hot coal industry, and it came at a time when oil prices were falling sharply ten years in the face of huge demand from Asia and the lack of new funding.
Glencore also said on Monday that it wants to reduce its total output by 50% by 2035 by 2019, from the previous target of 40%, and wants to reduce it by 15% by 2026, which was said to reflect Cerrejón’s overall ownership.
Miners are coming under duress from investors and banks to clear their coal mines and align their businesses with the goals of climate change in Paris. Hot coals are heated in power stations to generate electricity, a process that produces about 30% of the world’s carbon dioxide emissions.
Anglo American has downgraded its coal mines in South Africa to a company based in Johannesburg and London. The deal at Cerrejón will end coal mining. BHP is review ads due to the Australian coal oil business.
However, former Glencore boss Ivan Glasenberg has said he took it out of the coals as if it had been worthless, stating that there are no environmental benefits from investors forcing miners to sell or shut down coal mines.
He also said that the company, which sells most of the coal in the world, was able to run its mines and use it as a source of investment in the production of nickel, copper and cobalt that will be required as the world moves to pure forms of electricity.
As such, Glencore decided to buy Anglo and BHP favorites when he announced his intention to retire this year. When the project closes in the second half of next year, the current budget could reduce the purchase price to $ 230m, according to Glencore.
Glasenberg said: “Loss of oil and making it a personal affair is not the solution to this problem.” We are confident that we can address our oil shortages effectively regardless of the commitments of the Paris Agreement, as evidenced by all our gas efforts. “
The deal completely changed the tons it lost when Glencore decided to build a moth at Prodeco, another Colombian coal mine.
Glencore promised in 2019 oil bills supply about 150m tonnes per year in the face of difficulties from those who make the most money. The growth of the coal business has not been successful, although Glencore will buy allies when it had the first right to refuse at their price.
The merger at Cerrejón will see Glencore’s coal temperature rise to 125m tons this year, from its first 110m project.
Glencore plans to achieve its goal of reducing emissions by removing coal over time and moving on to renewable energy and adding fuel to its mines.
The discovery comes as Glasenberg prepares to stand at the end of the month. He is followed by Gary Nagle, a former Glencore coal business leader.
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