BHP: Thermal coal investments not in company’s future plans

BHP: Thermal coal investments not in company’s future plans

first_imgBHP: Thermal coal investments not in company’s future plans FacebookTwitterLinkedInEmailPrint分享Australian Financial Review:BHP says it has no appetite for new investments in thermal coal, regardless of how lucrative those investments may be, but has also signalled it is unlikely to invest in commodities like lithium and cobalt.The hardening of BHP’s attitude toward the type of coal used for power generation was revealed in a slide pack published ahead of a strategy briefing by chief financial officer Peter Beaven.The presentation declares that the decarbonisation of the energy sector will see thermal coal ”phased out, potentially sooner than expected”. BHP then added that it had “no appetite for growth in energy coal regardless of asset attractiveness”.”Our energy coal exposure is just three per cent of our asset base. But it is made up of two very high-quality mines which generate high margins. Our focus will be on maximising value to shareholders, whether we are long term owners or not,” Mr. Beaven told analysts on Wednesday morning.The comments come after Deutsche analyst James Gurry said this week that he expects BHP to exit its thermal coal assets, which comprise the Mt. Arthur mine in New South Wales and a stake in the Cerrejon business in Colombia. Mr. Gurry said in a note that he valued BHP’s thermal coal assets at more than $US2.5 billion ($3.6 billion).More: BHP dark on thermal coal’s futurelast_img

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