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Coal Divesting

Anglo American, South32 walk away from thermal coal

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By Vanessa Zhou | Australian Mining

Anglo American is the second company to cut off its South African thermal coal assets following a similar move by South32 last week.

Anglo American plans to demerge its thermal coal operations in South Africa and establish a new holding company called Thungela Resources to hold the assets.

The company intends to support Thungela with a cash injection of ZAR2.5 billion ($225 million) on top of ongoing capital support until 2022 to guard Thungela against any drop in thermal coal prices….Full Story

BHP ends domestic thermal coal sales

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By Peter Ker | Australian Financial Review

Thermal coal mined by BHP will no longer be burned to make electricity in Australia, after the miner quietly ended the decades long connection between its NSW mine and the nearby power stations of AGL Energy.

BHP has started dismantling the 10 kilometre conveyor belt that fed coal from its Mt Arthur mine to AGL’s Bayswater and Liddell power stations, and the miner confirmed that it had stopped selling coal to the power stations altogether during fiscal 2020.

The move continues BHP’s gradual shift away from thermal coal, which had manifest in a series of incremental changes in the Hunter Valley in recent years until it was formalised in August, when BHP finally confirmed that it was trying to sell Mt Arthur and another thermal coal asset in Colombia…Full Story

Anglo American flags thermal coal exit

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By Vanessa Zhou | Australian Mining

Anglo American chief executive Mark Cutifani is mulling over the company’s exit from its South African thermal operations.

This will likely be done through a demerger in two to three years’ time and also include its Cerrejón operation in Colombia, which mine ownership is shared with BHP and Glencore.

Cutifani said the company had reduced its thermal coal footprint by 55 per cent and was well on the way to achieve its exit target.

The chief executive expects the South African exit to take place much more quickly than its departure from Cerrejón.

“…We are also being very respectful of our two partners in terms of our processes. We maintain a dialogue,” Cutifani, speaking in Anglo American’s 2020 interim results conference call, said…Full Story

First State Super to sell out of thermal coal

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By Euan Black | The New Daily

One of the nation’s largest superannuation funds has promised to ditch its shares in companies that earn more than 10 per cent of revenue from thermal coal mining.

First State Super, which looks after more than $120 billion in retirement savings, announced its plans to sell out of thermal coal as part of a broader climate action plan released on Thursday.

The superannuation fund has set an emissions reduction target of 30 per cent across its listed equities portfolio by 2023 and 45 per cent across its portfolio by 2030.

First State Super CEO Deanne Stewart said climate change was one of the biggest risks to members’ retirement savings, and that now was the time for “bold and decisive action”…Full Story

Citi Vows to Stop Working with Thermal Coal-Mining Companies

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By Jennifer Surane | Bloomberg

Citigroup Inc. will stop providing financial services to thermal coal-mining companies over the next 10 years to help accelerate the economy’s shift away from fossil fuels.

By 2025, the bank won’t provide underwriting and advisory services to the industry and will cut its credit exposure in half, Citigroup said Monday in a statement. It plans to eliminate its exposure entirely by 2030.

“Citi recognizes that emissions from fossil-fuel sectors in particular must be drastically reduced in the coming decade,” the company said in the statement. “The shift away from fossil fuels in pursuit of renewable and other sources of low-carbon energy will have a significant effect on clients in coal-fired power generation, coal mining and certain segments of the energy sector.”…Full Story

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