Glencore to close Australian coal mine as prices plunge

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.

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