Business

Glencore still struggling to sell share in coal terminal

The first of the deck units required for the Wiggins Island Coal Export Terminal's wharf is lifted into place in September.
The first of the deck units required for the Wiggins Island Coal Export Terminal's wharf is lifted into place in September. Contributed

RESOURCES giant Glencore says it is still struggling to attract interest in its bid to sell off nearly half its share in Gladstone's $ 3 billion Wiggins Island Coal Export Terminal.

The push to sell comes as the cost of bringing new supplies of coal to market starts to bite Queensland producers.

Glencore has been attempting to sell five of its 10.9million tonne a year allocation at the terminal, but to no avail.

"No offers have been received to date, but we are continuing to monitor opportunities to transfer the capacity in accordance with the WICET arrangements," a spokesperson said.

The non-interest comes as the coal market in Queensland struggles to bring new supplies to market due to high costs and soft prices.

This week, BHP Billiton walked away from developing a second terminal at the Abbot Point project.

If Glencore is unable to find a buyer, it would still need to pay WICET for the extra capacity that it can not fill.

Stage one of the terminal is due to be complete mid-2014.

Topics:  coal, gladstone, glencore, resources, wicet




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