Huge Coal Company Glencore has announced its closing its doors for three weeks due to an “Oversupply of Coal”. During the shutdown, production will be trimmed to close to 5 Million Tonne and workers will be forced to use their annual leave.
In the unprecedented caused by to much supply of coal, the commodity price has been hurt. Glencore stated that “This is a considered management decision given the current oversupply situation and reduces the need to push incremental sales into an already weak pricing environment”.
They remain upbeat on the fact that they the coal price will come back to normal though. They will shut the doors mid December. They have 13 mines which employs over 8000 people.