The Anglo-Swiss mining group Glencore has shelved plans for the development of the 20 Mt/year Valeria thermal and steel coal mine located in the Bowen Basin, in Australia’s Queensland state. The project, which was expected to begin construction in 2024, was originally part of a package bought from Rio Tinto for US$1.7bn in 2018.
The coal mine, which was estimated to cost around AUD2bn (US$1.3bn), was cancelled due to global uncertainty, an increase in Queensland state royalties on coal, and because it is in line with Glencore’s commitment to reduce its coal business and achieve net zero emissions by 2050. Earlier in December 2022, Glencore announced that it would shut down 12 coal mines by 2035, in order to reduce its emissions by 50% for that same year.
Australia produced more than 456 Mt of coal in 2021 (-7% compared to 2020) and exported around 365 Mt.