“We are now in the process of consulting with shareholders to assess their views regarding the potential demerger of our coal and carbon steel materials business,” CEO Gary Nagle said in a release.
“We expect to be able to announce the outcome of such engagement and the decision of the Board …next week.”
Glencore is already a top producer of thermal coal, the most polluting fossil fuel, with an expected output of between 98 million and 106 million tonnes this year.
Its 2024 steelmaking coal production should increase to 19-21 million tons post-acquisition, from 7-9 million.
Reuters in March reported that a growing group of Glencore investors were keen for it to keep mining coal instead of spinning out the soon-to-be enlarged unit, with one eye on its financial outlook and another on the environmental benefits of keeping coal in-house.
While a demerger could lead to a share price bump, critics say that spun-off assets…
