Agree, times are just getting harder for thermal coal producers...

Agree, times are just getting harder for thermal coal producers and investment groups are really turning the screws. Have a look at the article below details Unisuper's current social activism at new Glencore project. Unisuper was a substantial holder in WHC until a couple of months ago! What does all this mean? To me it means that coal companies need to position themselves with strong balance sheets.


UniSuper blocks development of Glencore coal mineJames FernyhoughReporterSep 18, 2020 – 4.52pm
John Pearce, the chief investment officer of the $80 billion fund, said thermal coal was no longer a viable investment, and there was no point pouring further investment into the undeveloped mine in which it holds a 15 per cent stake.“We don’t believe the economics of that stack up. We think thermal coal is bound to be a stranded asset," he told an audience of UniSuper members – many of whom are climate-concerned academics – at a virtual event organised by Melbourne University on Thursday evening."Furthermore, when we look at the financials of that, and we apply a carbon tax, we just don’t see how it stacks up. So we have formally told our joint venture partners that we will not support the development of that coal mine.”Work has not yet begun on the project in central Queensland as it is still going through state assessment processes.Mr Pearce said UniSuper's 15 per cent holding in the mine might be enough to prevent it going ahead. A Glencore spokesman disputed this, saying: “UniSuper has an indirect minority interest in the Valeria coal project and their approval is not necessary for the project to proceed. UniSuper was an existing JV partner attached to the resource when we acquired it from Rio Tinto more than two years ago.”