Glencore to close Australian coal mine as prices plunge

|About: Glencore Plc (GLCNF)|By:, SA News Editor

Glencore Xstrata (GLCNF, GLNCY) will suspend operations at its Ravensworth underground coal mine in Australia, saying it is no longer financially viable to operate the mine due to a combination of lower prices, high production costs, a strong Australian dollar and geological constraints in future mining areas.

The mine produced 2.1M metric tons of semi-soft coking coal in 2013 and will be placed on care and maintenance once work on a longwall section is completed in September.

The price of coking coal used in steelmaking has tumbled by ~$200/metric ton from its 2012 high above $300.