Glencore's CEO, Gary Nagle, renowned for managing the company's extensive coal operations, is leading a groundbreaking move to divest entirely from coal. This strategic shift, marked by a recent multibillion-dollar deal, positions Glencore to concentrate on strengthening its role as a primary supplier of metals crucial for electric vehicle batteries and other sustainable technologies.

Nagle emphasized Glencore's remarkable portfolio in forward-thinking metals such as nickel, copper, cobalt, and zinc. This transformation aims to reposition the company as a global leader in metals transition.

However, the challenge for Nagle lies in executing a seamless exit from coal, which has historically been a cornerstone of Glencore's operations, generating over half of its adjusted profits last year.

The ambitious plan unveiled last Tuesday involves an initial payment of $6.93 billion for a 77% stake in Teck Resources' coal business, integrating Teck's metallurgical coal assets with Glencore's thermal coal business. Subsequently, Glencore intends to spin off the consolidated coal business within two years after the deal's completion.

Glencore has stood apart among major resource companies by maintaining a significant presence in thermal coal. Despite global pressure to reduce greenhouse emissions, Nagle justified the company's role in providing essential energy during the transition period. Initially, Glencore planned to operate the coal mines until their depletion by 2050.

The move to divest coal assets is projected to enhance Glencore's share value, which some investors had previously shunned due to the company's coal exposure. The new standalone coal entity is planned to be listed primarily in New York, reflecting Nagle's belief that U.S. investors prioritize pragmatism and returns over Europe's environmental, social, and governance concerns.

Analysts estimate the value of the new coal company could range between $22 billion and $35 billion at its listing, significantly surpassing the valuations of even the largest U.S. coal firms.

Amidst the industry shift, Glencore continues to dominate global copper and cobalt production, accounting for a substantial portion of the world's supply. Additionally, the company is expanding its presence in critical minerals by securing ventures in lithium trading and a notable Argentina copper project.

Gary Nagle, a South African native who has held various key roles within Glencore, took the helm as CEO in 2021, succeeding Ivan Glasenberg, a former coal trader. Nagle's leadership faces challenges, including recent legal issues and ongoing investor lawsuits, as he navigates Glencore's strategic transformation from coal to sustainable metals and minerals.

Nagle's tenure has also seen significant efforts towards improving Glencore's compliance culture, following legal fines and allegations of corrupt activities. Investors note similarities between Nagle and Glasenberg in their focus on the company's operational intricacies and deal-making prowess.

Glencore's endeavour to exit coal signifies a monumental shift in its strategy, transitioning from a coal-centered conglomerate to a metals-focused enterprise, aligning with the global shift towards sustainable energy sources and technology.