Friday, October 24, 2025

Latest

Glencore Cuts Cerrejon Coal Production As Prices Hit Three-Year Low

Glencore Plc (LON: GLEN) announced on Tuesday it will reduce coal production at its Cerrejon mine in Colombia by 5 to 10 million metric tonnes annually, citing “unsustainable prices for seaborne thermal coal.”

The production cut will bring Cerrejon’s annual output to 11 to 16 million tonnes, down from 19 million tonnes last year, as the world’s biggest coal shipper responds to a prolonged price collapse.

Coal prices have slumped to their lowest levels since mid-2021, with Australia’s Newcastle coal futures falling to around $100 per tonne, approximately 20% lower since January. The decline contrasts sharply with the record $450 per tonne reached in September 2022 following Russia’s invasion of Ukraine.

“We believe the decision to reduce production will contribute to guaranteeing the sustainability of operations,” Cerrejon said in a statement.

The price weakness stems from record production in India and China, which has caused stockpiles to accumulate in both countries.

Glencore had previously projected total coal production to be between 92 to 100 million tonnes for this year. The company has historically reduced output during weak market conditions to support prices.

The Anglo-Swiss commodities giant, which posted record profits during the 2022 global energy crisis, has since seen earnings decline. Cerrejon, one of Colombia’s major coal producers, also faces ongoing legal issues with local communities and regular rail line blockades.

The decision follows Glencore’s earlier indications this year that it was prepared to take action to support one of its most important commodities.


Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Steadright Enters MOU To Acquire Historic Goundafa Polymetallic Mine In Morocco

Military Seizes Power in Madagascar After President Flees

Related News

Adani Group Caught Overinflating Coal Prices

The Adani Group, a powerful conglomerate with deep political connections in India, has come under...

Friday, October 13, 2023, 12:58:00 PM

Glencore Drops $5 Million Into Stillwater Critical Minerals For 9.99% Stake

Glencore is evidently still interested in projects being conducted by exploration companies, electing this morning...

Friday, June 23, 2023, 08:25:49 AM

Pierre Lassonde Isn’t Too Happy About the Teck-Glencore Deal

Veteran mining entrepreneur Pierre Lassonde expressed his bewilderment at Teck Resources’s recent decision to sell...

Friday, November 17, 2023, 11:02:00 AM

Colonial Coal: Recent Met Coal Deals Bode Well For This Small Cap

Two recent metallurgical coal transactions which carried high price tags could benefit Colonial Coal International...

Monday, November 20, 2023, 06:44:00 AM

The Green Flip-Flop: UK Wants to Delay Closure of Coal Power Plants Over Blackout Fears

The UK government is proposing delaying the scheduled closure of the country’s emergency coal-fired power...

Thursday, March 16, 2023, 03:41:00 PM