Glencore decides against coal spin-off after talking to investors

JOHANNESBURG/ LONDON (Reuters) – Glencore will not spin off its coal business after securing backing from the majority of its investors who see lucrative earnings from the fossil fuel after the commodities giant’s recent acquisition of Teck Resources’ coking coal assets, it said on Wednesday.

Lack of investment in new coal assets and a realisation that the fuel will remain part of the global energy mix for years to come is likely to underpin tight supplies and high prices which investors expect will continue to boost Glencore’s profits.

(Reporting by Felix Njini and Pratima Desai; editing by Jason Neely)