The ultimate goal of mining is coal – and net zero

Glencore has doubled its strategy this morning to achieve its net-zero emissions target, as climate giant Glencore retains its focus on the coal trade, and climate activists say it will erase bad news for the planet.

Glencor is one of the largest mining companies in the world, with its dead-cast coal mines. In June, the world’s largest coal mine – the Core-Core Core in Colombian – swallowed the shares held by two rival Anglo-American and BPP groups, each of which decided to give up coal and reduce carbon emissions. Industry.

Instead, Glencore aims to sustain its coal business for decades, despite strong climate targets and net zero carbon emissions by 2050.Greenwire(December 7, 2020)

This is part of what we call the Glencor spillway, in which the company “responsibly” depletes its coal production over time. These plans, which were widely accepted by investors at their annual general meeting in April, stemmed from the belief of senior executives that the company was well-suited to destroy these projects, and in the short term coal was essential to global energy needs. .

In this way, Glencorre plans to reduce its emissions by 2030, including claims that it will reduce its emissions.

Earlier this week, activist investor Blue Capital Capital Partners wrote to Glencore CEO Gary Nagel, urging officials to take responsibility for attracting new investors.E and E News Prime Minister, November 30).

This morning, the company’s chief executive rejected Bubble’s request. Speaking at an event for investors, Nagle said the competition was “a strategy that is responsible for both our business and the world.”

“While most of our shareholders – our big shareholders – have told us that they want us to extract our coal assets, we have always made it clear that most of our shareholders need to listen,” Nagle said. .

At a general meeting earlier this year, the General Manager voted 94 percent in favor of Glencorn’s climate strategy. “Ninety-four percent of us said they liked our strategy,” he said.

Why do you stay in coal?

The coal business has changed a lot over the past year.

A year ago, the coal industry was a no-go zone for investors. The cholera epidemic has reduced energy demand and shut down steel mills in many countries, reducing the need for thermal coal and purchasing key metals from steel production.

With the global coal industry hit by the epidemic, years of intensive environmental control and the growing global climate change, many investors and banks are reluctant to finance the commodities.

But now that economies are booming with the end of the epidemic, coal prices are skyrocketing. Demand for energy and steel has improved, but coal production has not been able to continue. This coal has at least temporarily become a commodity on the back of the power supply problem (Greenwire, November 17).

The company knows this. When asked to comment on the letter from BlueBell, Glencor spokesman E and E News reported that the investor had received a letter from investment firm Barclay stating that the current strategy was “already increasing investment” in the business.

“In today’s market conditions, we have seen a low price that would open up our coal production capacity,” the November 30 memo said.

‘It is their capital’

Glencor CEO said during the event that it was a matter of shareholders if the company changed course.

If they change their mind – these big shareholders – they tell us that most of them have a different point of view and they think that driving coal is the right way, then we have to look at it. It is their capital where we are employed. ”

Climate advocates, however, say that favorable market conditions, in line with the emissions needed to bring about climate change, will prevent coal companies from destroying their assets quickly.

Justin Guy, director of the Global Climate Strategy for the Sunrise Project, said in an interview that the current high prices are “noisy” and investors are aware that the coal industry will be declining for a long time.

But he admits that it would be “impossible” to keep coal-rich companies away from fossil fuels. Glencore’s shareholders say the company’s strategy is a good indication of how serious some of them are about climate change on Wall Street.

“One of the strongest factors in a company like Glencore is the pressure on transition investors,” he said.

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