One of the world’s largest mining companies Glencore has announced it will cap its global coal output after pressure from shareholders over climate change.
“We recognise climate change science as set out by the United Nations Intergovernmental Panel on Climate Change,” Glencore said in a statement.
“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 says the way forward and to meet the growing needs of a lower carbon economy is to grow the production of commodities essential to the energy transition and limit coal production levels.
As well as coal mining, the company has copper, cobalt, nickel, vanadium and zinc in its portfolio.
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Resources Minister Matt Canavan slammed the decision, saying the company was trying to dominate the market as in 2017, the company acquired Rio Tinto’s thermal coal business.
“Last year, Glencore made one of the biggest purchases of thermal coal assets in history,” he said.
“And now they say no-one else should mine coal.
“Call me sceptical but this sounds like just basic self-interest.
“Glencore dominate the seaborne thermal coal market and of course they don’t want to let others in.”
Glencore is one of the largest companies in the world, with its global members managing more than US$32 trillion in assets.
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Glencore says it recognises the importance of disclosing to investors how the company ensures that its investments align with its Paris Goals.
“In 2017, we announced our first target of reducing our greenhouse gas emissions intensity by 5 per cent by 2020 compared to a 2016 baseline. We are currently on track to meet this target,” the mining giant says.
“Glencore recognises the importance of continued reductions of greenhouse gas emissions from our operations. We are developing new, longer-term targets based on policy and technological developments that support the Paris Goals, and intend to make these public in our Annual Report in 2020. We will report annually on our progress.”
It was reported that after the announcement, Glencore stocks went up two per cent on the London stock exchange.