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Wednesday, 19 February 20
GLENCORE WRITES OFF ALMOST $1 BILLION AT COLOMBIAN COAL MINES DUE TO FALLING EUROPEAN IMPORTS: BLOOMBERG
BloombergThe economic case against European coal is proving too much for even Glencore Plc.
 
The world’s biggest coal shipper cut the value of its Colombian business — which mostly sells to Europe — by almost $1 billion as it adjusts to the struggling market. It also plans to stop mining coal in Colombia in next 15 years.
 
The announcement is another example of how climate change and Europe’s dwindling demand for coal is starting to reshape the global energy industry. A glut of natural gas, along with a milder winter, and higher costs for carbon-emissions allowances, has tilted the economics of generating electricity away from coal and toward using more gas.
 
Investors are piling on pressure over climate change impacts and last year Glencore agreed to cap coal production. But it’s the economics that are proving decisive.
 
 “The Atlantic coal market, I don’t see a big recovery,” Chief Executive Officer Ivan Glasenberg said on Tuesday. “It’s clear the amount of coal being consumed in the Atlantic is decreasing.”
 
The collapse of European coal demand is not just a headache for Glencore. BHP Group, the biggest mining company, is looking to exit the business. One of its assets is Cerrejon, a mine in Colombia it owns with Glencore and Anglo American Plc. In the current market, there are few natural buyers.


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Recent News

Friday, 21 February 20
INDIA: POTENTIAL INVESTORS SEEK MORE CLARITY ON COMMERCIAL COAL MINING NORMS - FINANCIAL EXPRESS
Potential private investors have sought more clarity on the pricing mechanism proposed for the much-anticipated auction for commercial coal mining. ...


Thursday, 20 February 20
CHINA RESUMES OVER 70 PCT COAL PRODUCTION CAPACITY AMID EPIDEMIC - XINHUA
China has resumed 70.2 percent of its coal production capacity with output recovering steadily amid the fight against the novel coronavirus epidemi ...


Thursday, 20 February 20
CHINA THERMAL COAL MARKET FACES 2-3 MONTH CORONAVIRUS SHORT SQUEEZE: NOBLE - REUTERS
China’s domestic thermal coal market faces a 2-3 month short squeeze as a rapidly spreading coronavirus outbreak curtails production more tha ...


Wednesday, 19 February 20
KOREA MIDLAND POWER INVITED BIDS FOR 1 MILLION TONS OF HCV AND LCV COAL FOR Q2- Q4 LOADING
COALspot.com: Korea Midland Power Co. Ltd, (KOMIPO). has issued an international tender for total 1 million MT of coal for April to December 2020 l ...


Wednesday, 19 February 20
MINERS WELCOME INDONESIA'S NEW JOBS BILL THAT COULD SPUR COAL GROWTH - REUTERS
Miners have welcomed proposed changes to Indonesian mining rules under a new law aimed at boosting investment, though critics are concerned that th ...


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