August 10, 2024 - Glencore has abandoned plans to separate its coal division, following substantial shareholder opposition. The Swiss mining giant had previously intended to merge Teck Resources’ steelmaking coal assets with its own and then demerge the combined unit. However, over 95% of shareholders supported retaining the coal business, valuing its cash flow to fund growth and returns. Analysts were not surprised by the decision, as coal remains a significant cash generator for Glencore, one of the world’s largest thermal coal producers. The company’s previous plans included reducing its thermal coal operations by mid-century, but shareholders’ desire to retain the business reflects the ongoing profitability of coal despite environmental pressures. If favourable conditions arise, Glencore remains committed to reducing its carbon emissions and may seek additional steelmaking coal assets. Critics argue that the decision does not address the social and environmental issues associated with coal mining, particularly for affected indigenous communities.