Giant Glencore coal mine faces threat as fund refuses backing
2020-09-21 11:58:02 [Print]
Glencore Plc's plans for a giant new coal mine in Australia's Bowen Basin may suffer a setback after key stakeholder UniSuper Management Pty said it won't support the project.
The A$80 billion ($59 billion) pension fund told its investment partners that it won't support the A$1.5 billion Valeria project as the economics don't stack up, Chief Investment Officer John Pearce said last Thursday night.
Glencore is the largest coal miner in Australia, the top exporter of the fuel, and UniSuper's move may hinder the company's plan to replace operations nearing retirement. Valeria is slated to produce about 4% of Australia's thermal and metallurgical coal when it starts up, which the company earlier this year pegged at 2026.
UniSuper's approval isn't necessary for the Valeria project to proceed, Glencore said. "UniSuper has an indirect minority interest," the company said. "UniSuper was an existing JV partner attached to the resource when we acquired it from Rio Tinto Group more than two years ago."
The A$80 billion ($59 billion) pension fund told its investment partners that it won't support the A$1.5 billion Valeria project as the economics don't stack up, Chief Investment Officer John Pearce said last Thursday night.
Glencore is the largest coal miner in Australia, the top exporter of the fuel, and UniSuper's move may hinder the company's plan to replace operations nearing retirement. Valeria is slated to produce about 4% of Australia's thermal and metallurgical coal when it starts up, which the company earlier this year pegged at 2026.
UniSuper's approval isn't necessary for the Valeria project to proceed, Glencore said. "UniSuper has an indirect minority interest," the company said. "UniSuper was an existing JV partner attached to the resource when we acquired it from Rio Tinto Group more than two years ago."
