Swiss multinational commodity trading and mining company, Glencore has abandoned plans to separate its coal division, a move announced after acquiring a 77pct stake in Elk Valley Resources (EVR). The decision came after shareholder feedback and internal analysis indicated that retaining the coal and carbon steel materials business would best serve shareholder value.
Although the business will remain part of Glencore for now, the company retains the option to consider a demerger in the future if conditions change, Glencore said in a statement.
This decision follows Glencore’s November 2023 announcement of the EVR acquisition and a challenging first half of the year, where the company reported a USD 233 mln loss despite a 9pct revenue increase to USD 117 bln. The loss included a USD 1 bln impairment, mainly from South African coal operations, and a 65pct profit drop due to normalizing conditions after previous spikes in coal and energy prices.