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Rio Tinto thermal coal mine in Australia cleared to expand

Australia’s Bengalla coal mine has been cleared to boost output by a third and operate for another two decades, majority owner Rio Tinto said on Wednesday.

Rio Tinto subsidiary Coal & Allied and 40 percent partner Wesfarmers Ltd have been seeking the clearance by the New South Wales state government to continue mining and potentially lift production of thermal coal to 15 million tonnes a year from 10.7 million.

The approval allows the mine to run until 2038, according to the company.

Rio Tinto last week said it was letting its energy division chief go and would place coal mining within its copper division, a move some analysts suggested could signal an intention to get out of coal.

Coal miners have been hard hit by a global supply glut that has more than cut thermal prices in half since 2011.

Peabody Energy in January lowered its quarterly dividend by 97 percent to 0.25 cents per share.

Glencore is curtailing production of thermal coal in Australia and South Africa in hopes of addressing the glut.
Source: Reuters (Reporting by James Regan; Editing by Ed Davies)