Japanese trader Itochu to exit thermal coal business by March 2024

Japanese trading company Itochu Corp. said it will divest from its thermal coal assets to promote decarbonization, in line with a new three-year management strategy.

The company's coal portfolio includes interests in a portfolio of projects held by Switzerland-based Glencore PLC and Australia-based Whitehaven Coal Ltd., including a 15% interest in the Maules Creek mine and a 10% interest in the Ravensworth Operations, both in New South Wales, Australia.

Itochu also has a 20% stake in the Suprabari coal mine in Indonesia, and a 20% stake in Drummond Co. Inc. subsidiary Drummond International LLC and its El Descanso and La Loma coal mines in Colombia under an agreement that was completed in 2011.

The company outlined its strategy for fiscal 2022-2024 in a Jan. 13 release, saying it will also work to reinforce initiatives for environmentally friendly products as well as circular economy businesses and services.

Itochu will reveal further details of the plan when it reports results for its fiscal year ending March 31, including targets for consolidated net profits and dividends.

The company also appointed Keita Ishii, a senior managing executive officer with the company, as president and COO from April 1, according to a same-day filing. Ishii will replace Yoshihisa Suzuki, who the company appointed as vice chair.