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Glencore sees charges cut for Newcastle Port coal shipments

The miner and trader operates eight coal mines in Australia
coal
Hunter Valley coal effectively has to go through Newcastle

Glencore PLC (LON:GLEN) will see port charges for coal transported through Newcastle in Australia cut by 20% after a ruling by the country’s competition authority.

The miner and trader operates ten coal mines in the Hunter Valley in New South Wales, with little alternative other than to export coal through Newcastle.

READ: Glencore doubles scope of buyback programme to US$2bn​

After a period of arbitration, The Australian Competition and Consumer Commission has ruled that Glencore should pay A$0.61 per ton gross on ships carrying its coal compared to A$0.76 a ton now.

Newcastle, which is the world's largest coal port, wanted a rise to A$1.36 a ton to reflect dredging costs, while Glencore argued the price should be cut to A$0.41.

The new price will be backdated until 2016.

Glencore’s Australian coal operations contributed almost US$4bn of sales in its latest half-year or almost 10% of group revenue.

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