November 5, 2018 Read More →

Mitsui considering sale of Australia coal mine stake

ET Economic World:

Japanese trading firm Mitsui & Co Ltd may sell its stake in an Australia thermal coal mine in the face of growing pressure to divest coal assets amid mounting concerns over climate change, its chief executive officer said on Wednesday.

“We’ve made it clear that we won’t invest in new thermal coal mining projects,” Mitsui President and Chief Executive Officer Tatsuo Yasunaga told analysts. “We will consider selling our stake in an Australian mine which produces only thermal coal if there is a good opportunity,” he said.

The trading company has said it would trim its thermal coal assets in the long term amid growing pressure worldwide for companies to cut reliance on the fossil fuel, but would continue to invest in coking coal – a key raw material for steel-making.

Rival Marubeni Corp said in September that it would halve its net coal-fired power generating capacity by 2030 to reduce its greenhouse gas emissions.

Under a goal unveiled in July, Mitsui also aims to double the ratio of power generating capacity from renewable energy to 30 percent in its total capacity by 2030 while cutting the portion of coal-fired power. Mitsui’s total net power generating capacity stood at 9.1 GW as of September, with coal-fired power accounting for 22 percent, gas-fired power 62 percent and renewable 16 percent.

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