|
"We
need global policy that acknowledges the global energy reality
that fossil fuels including coal will continue to be used,"
Glencore head of global coal assets Peter Freyberg said in
prepared remarks for a speech in Australia.
"We also need a policy which addresses the funding gap to
facilitate the build of high-efficiency, low emission power
stations," Freyberg said.
Close to 200 nations are set to meet at a United Nations summit
from Nov. 30-Dec. 11 in Paris in hopes of forging a pact to slow
man-made climate change by weaning countries off fossil fuels.
As one of the world's biggest suppliers of coal worldwide,
managing the production of some 98 million tonnes in Australia
alone last year, Glencore has been hit hard by a dramatic
weakening of the sector.
Though not specific to coal the Swiss-based group has pledged to
cut its $30 billion of net debt by selling assets, spending
less, suspending dividend payments and raising $2.5 billion in a
share sale.
Freyberg noted that prices for coking and thermal coal have
fallen by nearly 75 percent and 60 percent respectively since
2011.
"In February, Glencore cut its 2015 Australian coal exports by
15 million tonnes to address global oversupply and continues to
review its operations," he said.
While the coal sector was still "rebalancing" due to
weaker-than-predicted demand in China, growth in new coal-fired
power stations in Taiwan, India, Vietnam and elsewhere in Asia
pointed to higher usage in the future, according to Freyberg,
citing International Energy Agency forecasts that global energy
demand will rise by 37 percent over the next quarter-century.
"Fossil fuels, including coal, will continue to dominate the
global energy mix," he said.
Glencore, whose shares have been hammered by worries about its
debt burden, on Monday sought to assure investors that the
impact of any credit rating downgrade on its debt profile would
be modest.
(Reporting by James Regan)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
|
