Coal news and updates

Glencore Xstrata update sparks fears for Wandoan coal project

Glencore Xstrata has indicated it is unlikely to develop new coal mines in the next few years, putting the development of the Southern Hemisphere's largest project in doubt.

The Wandoan project covers 32,000 hectares on southern Queensland's Western Downs and could see 30 million tonnes of coal mined each year.

Preliminary work is underway but the company is still awaiting final approvals from the State Government.

It is also yet to make a decision about whether to go ahead with the mine.

However, in an investor update overnight, Glencore Xstrata said current prices for thermal coal were unsustainable because of oversupply in the global market.

It says it will focus instead on improving or expanding existing mines.

The company is planning on making $2 billion in savings across its global operations by 2014.

Source: www.abc.net.au