Glencore to pay new entity in global chain to market coal

Swiss-based mining giant Glencore says it will pay a new entity within its global chain to market and distribute its coal as it moves to close its Singapore office. The company, one of the world’s largest producers and traders of resources from coal to copper, is currently under audit by the Australian Taxation Office for the low level of taxes it pays locally. New coal contracts will be directly between the relevant Australian mining company and end customer. He said the Australian company would now sell its coal directly from its Australian operations to end customers. Fairfax Media can reveal that the company will pay a third-party, within its global chain, a fee to do this. A spokesman said Glencore was in the process of closing its Singapore coal marketing office and “new coal contracts will be directly between the relevant Australian mining company and end customer”. “Our global coal marketing function will market the coal and be paid an arm’s-length marketing commission commensurate with this activity,” he said. Hefty loss During the Senate inquiry’s hearing in Melbourne earlier this year, Glencore revealed it made a $US1.4 billion ($1.8 billion) loss in Australia for the 2014 financial year. The company … continue reading

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Source: CTRM Center

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