Glencore has announced that the company will restart operations at its coal mines in Australia following a three-week suspension.
Operations had been suspended due to concerns of an over-supply of coal to international markets and intended to combat the glut.
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In a statement emailed to Reuters, Glencore said: "We are in the process of resuming coal production, as planned."
As anticipated by Glencore, the temporary shutdown of coal operations would reduce its output by five million tonnes, representing 2.5% of the country’s 2014 forecast for thermal coal exports.
In November, Glencore announced plans to close its Australian mines for a period of three weeks to help counter the crippling global over-supply that had affected prices. The company chose a temporary shutdown instead of resorting to more drastic measures in future.
"This is a considered management decision given the current oversupply situation and reduces the need to push incremental sales into an already weak pricing environment," Glencore added.
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By GlobalDataAccording to Glencore, up to a third of the coal sector in Australia is running at a loss at present.
Government figures reveal that Australia’s production of thermal coal is expected to increase by 8% to 270 million tonnes in the next two year, Reuters reported.
