Glencore starts "business rescue" at South Africa coal unit

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CoAL granted mining rights for Makhado

Glencore has begun a business rescue process at its South African coal unit due to “unsustainable financial hardship” in supply agreements with power utility Eskom, the company said on Tuesday.

[DATA GLN:Glencore Xstrata Plc], which also planned to cut jobs, has been supplying coal to the state-owned utility for less than the cost of production, the company said in a statement.