Japan’s Itochu to exit thermal coal business, provide stakes in mines by March 2024

TOKYO, Jan 13 (Reuters) – Japanese trading home Itochu Corp 8001.T mentioned on Wednesday it strategies to exit the thermal coal enterprise, promoting its stakes in mines in Columbia and Australia by March 2024 as it aims to boost decarbonisation.

Itochu’s statement was the initially affirmation from the firm that it would totally withdraw from thermal coal business. It experienced previously explained it would not invest in new stakes in thermal coal mines.

The transfer arrives as other Japanese buying and selling homes, like Mitsubishi Corp 8058.T, offload thermal coal belongings on escalating considerations about the fuel’s environmental affect.

Itochu’s choice is broadly tied to a new three-calendar year business enterprise method via March 2024. Aspects of the prepare, such as earnings and dividend targets, will be unveiled in April or May well, when Itochu announces earnings for the present-day fiscal yr ending March 31.

Itochu now retains a stake in the Drummond mine in Columbia, equal to 6 million tonnes of thermal coal output a 12 months. It also owns stakes in two mines in Australia – Maules Creek mine, with output equal to .9 million tonnes a calendar year, and Ravensworth North mine, equivalent to 1.5 million tonnes a yr.

The corporation also stated on Wednesday its senior running executive officer, Keita Ishii, will become president and Main Running Officer on April 1.

The latest president, Yoshihisa Suzuki, will turn into vice-chairman, though the powerful chairman and Chief Government Officer (CEO) Masahiro Okafuji will keep his present roles.

(Reporting by Yuka Obayashi Modifying by Kenneth Maxwell)

(([email protected] +813-4563-2761))

The views and views expressed herein are the views and thoughts of the author and do not automatically reflect these of Nasdaq, Inc.