Itochu to exit thermal coal business by 2024

Itochu Corporation plans to start divesting its thermal coal mining assets in Australia from this year.

In a move towards decarbonisation, the trading company announced in 2019 that it planned to divest its coal assets and not develop any new coal-fired power plants or purchase any thermal coal mining plants.

The company has been in the Australian coal business for about 50 years and holds interests in five coal projects.

These include a 15 per cent interest in the Whitehaven Coal-managed Maules Creek thermal coal mine and a 10 per cent interest the Glencore-managed Ravensworth thermal and coking coal project, which are located in New South Wales.

It also holds a 12.5 per cent interest in the Wandoan thermal coal joint venture (JV) project with Glencore and SCAP Wandoan in Queensland, which operation has been on hold since 2013.

The decision to exit thermal coal was announced in Itochu’s outline of medium-term plan, which will be effective until the 2024 financial year.

Itochu is also set to rename its non-ferrous & metal materials department to non-ferrous metal & recycle department.

The company owns two other coking coal assets in Queensland (the Oaky Creek and Karin greenfield joint ventures), and one coking coal project (the Suprabari Mapanindo in the Kalimantan Island) in Indonesia.

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