Mining and commodities group Glencore has decided to retain its controversial coal interests following months of speculation that it would demerge the business.

Gary Nagle, CEO of the FTSE 100 listed Swiss group, said that following the acquisition of 77% of Elk Valley Resources in early July the board has received backing from shareholders to keep the coal and carbon steel materials business within the group.

In a half-year report he said: “We undertook an extensive consultation with shareholders and based on the outcome of that process and the group’s own analysis, Glencore’s board, considering both risk and opportunity scenarios, endorsed the retention, rather than demerger, of the coal and carbon steel materials business, as currently providing the optimal pathway for demonstrable and realisable value creation for Glencore shareholders.

“Some shareholders stated that this was a decision for the board alone to make, but of the others, the overwhelming majority had a clear preference for retention.

“This was primarily on the basis that retention should enhance Glencore’s cash-generating capacity to fund opportunities in our transition metals portfolio, such as our copper growth project pipeline, as well as accelerate and optimise the return of excess cash flows to shareholders.”

Against the backdrop of lower average prices for many of the company’s key commodities during the period, particularly thermal coal, overall group adjusted EBITDA of $6.3 billion was 33% below the comparable prior year period.

However, funds from operations were up 9%, due to the timing of income tax payments. The company reported a net loss attributable to equity holders of $233 million, after recognising $1.7bn of significant items, including c.$1bn of impairment charges.

Mr Nagle added: “The strength of our diversified business model across marketing and industrial has proven itself adept in a range of market conditions, giving us a solid foundation to successfully navigate the near-term macroeconomic uncertainty.

“We continue to remain focused on operating safely, responsibly and ethically and creating sustainable long-term value for all our stakeholders.”

Glencore shares closed 1.45p higher at 393.15p, but are down 13.6% over the last three months as copper prices fell and China’s economy slowed down.