Glencore said it will not spin off its coal business after securing backing from the majority of its investors, according to Reuters. The miner had been debating on whether to keep the coal assets or spin them off after it purchased the majority of Teck Resources’ steelmaking coal business last month.
Retaining the coal assets “offers the lowest risk pathway to create value for Glencore shareholders today,” Glencore Chairman Kalidas Madhavpeddi said.
The news agency said lack of investment in new coal assets and a realization that the fuel will remain part of the global energy mix for years to come is likely to underpin tight supplies and high prices which investors expect will continue to boost Glencore’s profits.
Source: Reuters