Glencore has hinted at possible closures of more Hunter Valley coal mines and further cost cutting in Australia due to low prices.
Glencoreglobal coal assets head Peter Freyberg was quoted by ABC as saying: "The Hunter Valley region represents the single biggest part of our global coal portfolio employing over 3,800 people.
Go deeper with GlobalData
"Further, we won’t and can’t operate mines that don’t make a financial contribution."
In February, Glencore announced its plans to reduce production for the year by 15 million tonnes to align coal output with existing customer demand.
The company also proposed cuts in thermal coal production at various sites, by implementing underground roster changes, scaling back several open-pit operations and revising its product portfolio.
See Also:
However, Freyberg said that the previously announced reduction may not be the final round.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataPrices of the commodity, which are currently below $60 per tonne, continue to slide amid fall in demand from China.
The company exports more than 85% of its coal to global markets and the remainder to domestic customers in Australia and South Africa.
Glencore has interests in more than 30 open-cut and underground coal mines in Australia, South Africa and Colombia in addition to exploration projects in British Columbia, Canada.
Image: Glencore’s Bulga Coal Complex in Australia. Photo: © Glencore.
