Australia’s largest coal miner Glencore’s decision to cap its global coal production has been dismissed by local miners as a public relations exercise dressed up as climate change action.
Glencore has announced that while it will continue mining thermal coal for power stations and coking coal to make steel it will now limit global production to about 145 million tonnes a year.
The Sydney Morning Herald is reporting that Activists that had pressured Glencore over climate change hailed the announcement as a win but other miners said it was a “brilliant public relations exercise” that was driven by economics not concern for the environment.
“You have to salute them for this beautiful PR, you satisfy the activists while doing absolutely nothing,” one Australian coal miner that preferred to remain anonymous told the SMH.
Glencore’s decision to limit production allows it to divest or close mines and open new mines as long as it doesn’t exceed the cap.
Another Australian coal miner, who also asked to remain anonymous, agreed, telling the Herald the miner had little incentive to expand production and invest in new coal mines after it acquired Rio Tinto’s NSW Hunter Valley and Queensland Hail Creek operations for around $A4 billion.