Coal news and updates

Glencore reassures stakeholders over future of Hunter coal

One of the Hunter Valley's biggest miners has reassured its stakeholders that coal has a future amid concerns the company's assets could become stranded.

Glencore is Australia's largest producer of thermal coal, with seven collieries in the Hunter Valley.

Chief executive Ivan Glasenberg has used the global miner's latest sustainability report to address concern among some stakeholders that its assets may become stranded.

Mr Glasenberg said Glencore does not believe that it will be prevented from fully utilising its fossil fuel reserves, adding they are currently the most reliable and affordable route to energy security.

However, it does recognise producing and using the fuels contributes to greenhouse gas emissions.

Glencore said it is committed to playing a constructive role in developing public policy for climate change and energy.

The company said increased efficiencies and emission controls of advanced coal technology, a range of low-emissions technologies and advances in carbon capture and storage will ensure coal is a part of the future energy mix along with renewables and nuclear.

It expects electricity demand to drive a steady increase in thermal coal exports particularly to developing Asian economies.

Meanwhile, Glencore's latest production report reveals March quarter output of 12-point-5 million tonnes, up slightly on the December quarter figure.

The company announced in February it would cut Australian coal exports by 15 million tonnes this year, due to falling demand.

It said the Newcastle export coal price dropped 20 per cent to US$62 per tonne.

source: http://www.abc.net.au