Recent mine acquisitions had helped Glencore achieve 50% more cost savings in its coal business than it targeted, the world’s biggest exporter of coal for power plants said on Wednesday. Glencore earlier in 2018 completed the acquisitions of the Hail Creek coal mine in Australia and a 49% stake in the Hunter Valley Operations (HVO) from Rio Tinto in a joint venture with Yancoal Australia. Glencore had expected to achieve annual cash savings of more than $300m in its coal business by the end of 2018 in a two-year cost-cutting drive, but on Wednesday said it now expected savings of more than $450m by year's end. The company now expected its mine unit costs to fall to $49 a ton in 2019, from a forecast of $52 for 2018, from its operations in Australia, Colombia and SA, it said in a presentation to analysts on a tour of its Australian coal mines. “[The firm has achieved] strong unit cost performance despite material cost headwinds from energy, royalties and higher consumable costs,” it ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now