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Glencore ( GLCNF ) could add more steelmaking coal assets, CEO says

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CEO says ESG concerns on fossil fuel moderating lately

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Glencore ( GLCNF ) swung to a net loss of $233 mln in first-half

(Rewrites throughout)

By Felix Njini and Pratima Desai

JOHANNESBURG/LONDON, Aug 7 (Reuters) - Glencore ( GLCNF )

will keep its coal business after securing backing from a

majority of its investors who see lucrative earnings from the

fossil fuel, its CEO said on Wednesday, adding the company could

acquire more steelmaking coal assets.

Glencore ( GLCNF ) also reported a net loss of $233 million for the

first half of the year, after recognising $1.7 billion in

one-time items, including about $1 billion of impairment

charges.

The London-listed miner recently concluded the purchase of

Teck Resources' ( TECK ) coking coal assets.

Lack of investment in new coal assets and the prospect of

the fuel remaining part of the energy mix for years to come is

likely to underpin tight supplies and high prices, which will

continue to boost Glencore's ( GLCNF ) profits.

The coal businesses generates "huge amounts of cash and we

can use that cash both to pay back shareholders through buybacks

and through dividends as well as," Glencore ( GLCNF ) CEO Gary Nagle said.

Investors' environmental concerns have moderated over the

past nine-to-12 months, Nagle added.

Glencore ( GLCNF ) could also add more steelmaking coal capacity,

Nagle said, but declined to say whether it would consider Anglo

American's Australian steelmaking coal assets, which are

up for sale.

"At the right price, in the right geography, in the right

quantity, there's no reason why we wouldn't consider additional

acquisitions of steelmaking coal."

Glencore ( GLCNF ) shares were up 0.6% at 0842 GMT.

The company had been canvassing investors on whether to keep

its combined coal assets or spin them off after it completed a

deal to buy the majority of Teck's steelmaking coal business

last month.

Retaining the coal assets "offers the lowest risk pathway to

create value for Glencore ( GLCNF ) shareholders today," Glencore ( GLCNF ) Chairman

Kalidas Madhavpeddi said.

Glencore ( GLCNF ) is "comfortable" maintaining a primary listing in

London but would consider other options if there were

fundamental changes and a reason to move to another exchange,

said Nagle, adding that support from the company's European

investors for its plan to retain coal had been overwhelming.

First-half core earnings, or EBITDA, slumped 33% to $6.3

billion, hit by a decline in prices for key commodities.

Adjusted EBIT for Glencore's ( GLCNF ) marketing division at $1.5

billion was down 16% from a year earlier and is tracking an

annualised $3 billion, Glencore ( GLCNF ) said, adding that the number

reflected a lower contribution from energy.

The Swiss-based company is guiding marketing EBIT at between

$3.0 and $3.5 billion this year.

(Reporting by Felix Njini and Pratima Desai; Editing by Sharon

Singleton and Mark Potter

)