MNC Doubles Coal Extraction

13 Feb 2013

The exploitation of metals in South Africa is doubling. Glencore International has doubled its coal production last year from its South African Mines. It is the world’s largest publicly traded commodities supplier. In one year, it has more than doubled its coal output after the acquisition of new operations in this country. The output of Coal fuel used in power stations rose to 41.8 million metric tons from 20.5 million tons the previous year.

The Switzerland-based company said in a statement that copper output also rose 3.9 percent to 376,700 tons. Glencore is seeking to round off its metal source purchases with a $36 billion takeover of Xstrata next month. To coal, it would be adding zinc, copper and nickel assets to become the world’s fourth-biggest mining company. When combined Glencore would have interests in about 35 coal mines in Colombia, Africa and Australia. In terms of seaborne cargo, Glencore would be accounting for about 10% of global seaborne exports. Cobalt production similarly gained 1.6 percent to 13,090 tons, and zinc production was up by 534,400 tons.

South Africa has been trying to benefit its economy by setting up value-adding industries rather than depending on the exports of metals, coal and diamonds. President Jacob Zuma has given several calls in this regard.  The private sector too has been reassuring the government in this respect.