Glencore logo FILE PHOTO

JOHANNESBURG – Glencore Plc said on Wednesday that it was putting in place measures to reduce coal output in a bid to reduce greenhouse gas emissions from its operations in response to pressure from investor signatories on climate change.

The diversified miner is also set to propose limiting the output of thermal and metallurgical coal at around current guidance levels of 145 million metric tons a year, and will not carry out major acquisitions that would add to total production.

Starting in 2020, Glencore said it will disclose its longer-term projections for the intensity reduction of Scope 3 emissions, including mitigation efforts as part of the transition of the global response to the increasing risks posed by climate change.

The miner - which runs a portfolio of more than 90 commodities including copper, cobalt, nickel and zinc - said the intensity of Scope 3 emissions were expected to decrease as it rebalances its portfolio towards commodities that support the transition to a low-carbon economy.

In 2017 Glencore announced its first target of reducing its greenhouse gas emissions intensity by five percent by 2020 compared to a 2016 baseline. The miner said it was currently on track to meet this target.

Glencore's chief executive, Ivan Glasenberg, said that the shift to a low-carbon miner was reflecting the strength of Glencore's uniquely diversified business model.

"Our commodity portfolio and its key role in enabling the energy and mobility transition for a low-carbon economy enables us to look ahead with confidence and to remain focused on creating sustainable long-term value for all our shareholders," Glasenberg said. 

Glencore reported an eight percent increase to $15.8 billion in interim adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in a challenging operating environment, while net income rose five percent to the $5.8 billion.

"Our strong cash generation underpinned the $5.2 billion of announced shareholder returns and buybacks in 2018," Glasenberg said. 

"Reflecting the strength of these cash flows, we are again recommending to shareholders a 2019 base distribution of $0.20 per share (~$2.8 billion), payable in two equal instalments in 2019."

African News Agency (ANA)