GLNCY Glencore Plc (PK)

   By Rhiannon Hoyle 
 

SYDNEY--Glencore PLC (GLEN.LN) said it will restart a shuttered coal mine in Australia it purchased last year from Vale SA (VALE) to meet strong demand for coal used in steelmaking.

The miner and commodities trader said it expects to resume mining at the Integra underground coal operation, formerly known as Glennies Creek, from early 2017 for two years.

The site in Australia's New South Wales state has been shuttered since July 2014 amid a downturn in global coal markets.

Glencore forecast it will produce roughly 1.3 million metric tons of coking coal at the site in 2017, which will "meet a specific need identified in the metallurgical coal market," the company said in an emailed statement.

Demand for Australian coal has risen in recent months because of restrictions on production in China, the world's top coal user, sending prices soaring.

Ian Cribb, head of Glencore's Australian coal operations, said the company expects to restart the mine "with minimal delays or additional investment."

Glencore's total coal sales from Australia are not forecast to increase, as output from Integra offsets closures at other mines, the company said.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

November 01, 2016 01:33 ET (05:33 GMT)

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