Image: Glencore
BY EMMA DAVIES
AFTER pressure from investor signatories of the Climate Action 100+ initiative, global miner Glencore has announced its decision to cap coal production at current levels.
In a statement, the Swiss-based coal giant said that it recognised climate change science as set out by the United Nations Intergovernmental Panel on Climate Change and realised it had a key role to play in enabling transition to a low carbon economy.
“To deliver a strong investment case to our shareholders, we must invest in assets that will be resilient to regulatory, physical and operational risks related to climate change,” Glencore stated.
“To meet the growing needs of a lower carbon economy, Glencore aims to prioritise its capital investment to grow production of commodities essential to the energy and mobility transition and to limit its coal production capacity broadly to current levels.”
Commodities of focus included copper, cobalt, nickel, vanadium and zinc, of which Glencore
Glencore – which was Australia’s largest coal miner – would take steps to reduce its greenhouse gas emission intensity by five per cent by 2020 (compared to a 2016 baseline), and allow public access to annual reports of its progress towards meeting climate change objectives.
The company also said it would re-assess whether its membership in relevant trade organisations might undermine its support for the Paris Agreement and goals.
However, the move to cap coal was at odds with the company’s 2018 global production – 128.4 million tonnes from its Australia, Colombia and South Africa coal operations – up 7 per cent from 2017.
The company also acquired several Rio Tinto coal assets last year, including 49 per cent of Rio Tinto’s Hunter Valley Operations (thermal coal), an 82 per cent of Rio Tinto’s interest in the Hail Creek (mainly coking coal) mine, and 71.2 per cent interest in its undeveloped Valeria thermal coal project.
