Glencore the maverick of the mining world, has long been used to doing business in unstable places. Now that the whole world is looking unstable, it is unsurprising to see Glencore doing well. In particular, its decision to resist pressure to divest from coal is looking prescient.
On Thursday, the world’s top coal exporter reported a doubling of profits in the first six months of 2022, mainly due to surging coal prices as the world scrambles for energy amid rising geopolitical turmoil. The company’s trading business also benefited from volatility across a range of commodities after Russia’s invasion of Ukraine. It said it will return an additional $4.45 billion to shareholders in dividends and share buybacks.