News
03.06.13

GLENCORE XSTRATA DUMPS COAL EXPORT TERMINAL IN AT BALACLAVA ISLAND

Glencore Xstrata was created through a merger of Glencore with Xstrata on 2 May 2013. Just weeks after the Swiss-based mining and commodities giant was created, a total of 80.85 per cent of shareholders on 16 May voted against re-electing former Xstrata, Chairman, John Bond, by its annual general meeting, while former BP boss Tony Hayward has been made interim chairman.              

Hayward, who quit as head of energy giant BP in the wake of the 2010 Deepwater Horizon oil rig spill in the Gulf of Mexico, had been serving as an independent non-executive director of Glencore Xstrata.

On 13 May, Glencore Xstrata dumped plans for a new billion dollar coal export terminal in at Balaclava Island, about 25 miles north of Gladstone. "This decision has been made as a result of the poor current market conditions in the Australian coal industry, excess port capacity in Queensland, specific shipping limitations and concerns about the industry's medium-term outlook," Glencore Xstrata said in a statement.

Glencore Xstrata's proposed facility was intended to ship up to 35 million tons of coal a year. The site would have opened a new route for coal exports from the Surat and southern Bowen basins in Queensland to buyers in Asia.