Share Prices & Company Research

Market News

18 Sep 2020 | 12:20

Pension fund Glencore's

(Sharecast News) - Glencore's plans for a new coal mine in Australia's Bowen Basin have run into unexpected opposition from a potentially key stakeholder. UniSuper Management Pty, a pension fund that holds a 15% stake in the joint-venture developing the project, known as Valeria, said it would withdraw its support because the economics underlying it did not stack up.

Glencore reportedly told Bloomberg that UniSuper's approval wasn't needed in order for Valeria to proceed, but the pension fund's chief investment officer thought otherwise.

Speaking at a University of Melbourne webinar on Thursday evening, UniSuper's CIO, John Pearce, said: "Through a complicated structure, a joint venture, we actually own 15% of that coal mine.

"You might think that, well 15%, how can you stop it? Well it turns out that some of the decisions require 100%, so it could be fairly problematic for those.

"[...] Thermal coal is bound to be a stranded asset."

Valeria was projected to supply approximately 4% of Australia's thermal and metallurgical coal per year when it entered into service, in 2026.



Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 15th January 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.