Swiss mining giant Glencore has announced the consolidation of its coal business, integrating its newly acquired Canadian mines into a single unit managed from Australia.
The strategic move aims to enhance the company’s management efficiency of its assets, according to a Reuters report.
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The restructuring follows Glencore’s acquisition of Teck Resources’ steelmaking coal assets for $6.9bn.
Initially, the company considered spinning off its coal assets, but this plan was later shelved.
A Glencore spokesperson stated: “Combined with the acquisition of EVR, we commenced a process to restructure the coal business and align it with the management structure, given the coal industrial assets are managed out of Australia.”
Despite a decrease in production from 106.1 million tonnes (mt) in 2023 to 99.6mt in 2024, Glencore remains one of the top producers and exporters of thermal coal, with significant operations in South Africa.
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By GlobalDataThe decision to reorganise the coal division under a unified Australian unit came after Glencore secured support from the majority of its investors, who continue to see value in the coal sector.
“We chose to complete the restructure despite the shareholder engagement resulting in a decision not to proceed with the spin-off,” the spokesperson added.
In January 2025, Glencore signalled its willingness to pursue mergers and acquisitions that would benefit shareholders.
In February, two former executives from Glencore and Lundin Gold founded Moranda Metals, a private mining shell company based in Canada.
The newly formed company aims to acquire assets in base and precious metals, including gold, silver and copper, across the Americas, with plans to utilise $15bn in capital from private equity firms for these acquisitions.
