One decade ago, the giant global mining company Rio Tinto started shedding its Australian coal mines. Bit by bit Rio Tinto's Hunter Valley mines were sold off. A global rival, the UK-listed Glencore, was a big buyer. So too Yancoal, the Chinese state-owned enterprise, was an eager shopper. Scraps were picked up by lesser players. Mount Pleasant was purchased by MACH Energy, a subsidiary of the Salim Group from Indonesia. And Bengalla was acquired by New Hope, from the Soul Pattison Group, an Australian-listed investment company.
A new phase of monopoly board capitalism now looms with Glencore about to embark on a major restructuring of its coal interests. Pressure has been building on Glencore to remove fossil fuel investments from its balance sheets. Glencore is a highly leveraged corporation and major banks are increasingly unwilling to lend money to companies involved in coal production. Moreover, investment analysts have argued for some time that Glencore's share price is significantly depressed by its involvement in the coal sector. The argument goes that investors concerned by the threats of climate change won't buy Glencore shares while ever it remains a coal miner. Shareholder activists express scepticism at Glencore's commitment to net zero greenhouse emissions by 2050 given its substantial coal holdings.
