Glencore to cut its Australia coal exports to ease glut
MELBOURNE (Reuters) - Glencore Plc said on Friday it planned to cut coal exports from its Australian mines by about 15 percent in 2015 to ensure the mines remain profitable as coal prices languish near 5-1/2 year lows.
The world's biggest exporter of coal for power stations said it would cut exports by 15 million tonnes. It will carry out the reductions by scaling back some open pit mining, revising its product mix and deferring some mine projects to ensure output meets demand in terms of quality and volume.
"We will continue to review all our coal operations in the prevailing economic climate," the company said in an emailed statement.
Glencore's Australian coal mines, some of which are co-owned with other companies, produced about 100 million tonnes in 2014, with its share of that production at nearly 70 million tonnes.
The output cuts, coming despite a slight rebound in Australian coal prices, may result in the loss of just under 120 jobs, the company said.
The Swiss-based trading giant suspended work at its Australian coal mines for three weeks in December to shore up the market when prices were at 5-1/2-year lows.
(Reporting by Sonali Paul; Editing by Christian Plumb)
