Glencore Xstrata Relinquishes Balaclava Island Coal Export Terminal (BICET) Development
SYDNEY, AUSTRALIA – – Over the past few years, Xstrata Coal has been studying a potential new coal export terminal development at Balaclava Island, approximately 40km north of Gladstone. Following completion of the merger with Glencore and a review of the project, Glencore Xstrata has decided to cease its work on BICET, effective immediately.
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.
In the long-term, we believe Australia will need to increase its coal export capacity in an efficient and internationally competitive manner, in response to increased demand for coal in Asia. As such, we believe the Queensland State Government will need to ensure its long-term ports strategy provides for the growth of coal export capacity that is essential to the Australian economy and the maintenance and improvements of people’s living standards overseas. We believe this can be achieved in an environmentally responsible and sustainable manner.
About Glencore Xstrata
Glencore Xstrata is one of the world’s largest global diversified natural resource companies. As a leading integrated producer and marketer of commodities with a well-balanced portfolio of diverse industrial assets, we are strongly positioned to capture value at every stage of the supply chain, from sourcing materials deep underground to delivering products to an international customer base.
The Group’s industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries. Our diversified operations comprise over 150 mining and metallurgical sites, offshore oil production assets, farms and agricultural facilities. We employ approximately 190,000 people, including contractors.
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