Glencore writes off almost $1 billion at Colombian coal mines due to falling European imports

first_imgGlencore writes off almost $1 billion at Colombian coal mines due to falling European imports FacebookTwitterLinkedInEmailPrint分享Bloomberg:The economic case against European coal is proving too much for even Glencore Plc.The world’s biggest coal shipper cut the value of its Colombian business — which mostly sells to Europe — by almost $1 billion as it adjusts to the struggling market. It also plans to stop mining coal in Colombia in next 15 years.The announcement is another example of how climate change and Europe’s dwindling demand for coal is starting to reshape the global energy industry. A glut of natural gas, along with a milder winter, and higher costs for carbon-emissions allowances, has tilted the economics of generating electricity away from coal and toward using more gas.Investors are piling on pressure over climate change impacts and last year Glencore agreed to cap coal production. But it’s the economics that are proving decisive. “The Atlantic coal market, I don’t see a big recovery,” Chief Executive Officer Ivan Glasenberg said on Tuesday. “It’s clear the amount of coal being consumed in the Atlantic is decreasing.”The collapse of European coal demand is not just a headache for Glencore. BHP Group, the biggest mining company, is looking to exit the business. One of its assets is Cerrejon, a mine in Colombia it owns with Glencore and Anglo American Plc. In the current market, there are few natural buyers.[Thomas Biesheuvel]More: Europe’s dying coal industry is forcing even Glencore to changelast_img

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