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Glencore’s coal output on the rise

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World Coal,

Glasenberg, CEO of Glencore has said that coal "looks good going forward", as Indonesia exports reduce with the country consuming more coal domestically.

In the last few years, a large supply overhang has hammered coal prices.

Indonesia stated in March that its 2015 coal output was expected to fall by around 6% on the year after production cuts at some of its coal operations.

But London-listed Glencore's coal output rose by 4% in the first quarter this year from the same period a year ago.

In January the company said it could shut down production destined for export from its Optimum Coal Mines in South Africa, which would put 1070 jobs at risk.

South Africa-born Glasenberg said, in reply to a concerned shareholder, that if the company goes ahead with the Optimum closure it would expand capacity at another lower cost South African mine.

"So the net effect should be the same but would just provide more benefit for shareholders, more benefit for the country, larger taxes being paid," he said.

Edited from source by Joseph Green

Source: Reuters

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