The Wall Street Journal reported that Glencore Xstrata plc (LSE:GLEN) is going to shelve its plans for a new coal export terminal in Queensland, Australia. The decision reportedly comes on the back of the company’s concern about the medium-term outlook for the coal industry.
As quoted in the market news:
Xstrata’s Australian coal unit spent several years examining plans for the terminal’s development prior to the company’s merger with Glencore International this month.
However, following completion of the merger and a review of the project, “Glencore Xstrata has decided to cease its work on the project, effective immediately,” the company said in an emailed statement. It cited poor market conditions in the Australian coal industry and excess port capacity in Queensland.
The company said it also had “concerns about the industry’s medium-term outlook.”
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