24th Feb 2020 11:32
(Alliance News) - Anglo Pacific Group PLC is to make no future investments into thermal coal assets, the mining royalty firm announced on Monday.
Anglo Pacific is refining its strategy, it said, due to "our increased focus" on environmental, social, & governance issues.
The new strategy will see it no longer invest in thermal coal assets. Thermal coal is used to fire power plants, whereas metallurgical coal is used to make steel.
Anglo Pacific also will focus on commodities "that support a more sustainable world", as well as setting up a sustainability committee.
The current portfolio includes coking coal in Australia, vanadium and copper in Brazil, iron ore in Canada, and uranium in Canada and Australia.
"We are pleased to announce this further refinement of our investment strategy which follows extensive discussion by management and the board," said Chief Executive Julian Treger.
"We firmly believe a sustainable and responsible mining industry can make a meaningful contribution to addressing the climate change challenge in order to help transition the world away from a dependency on carbon generated energy."
Anglo Pacific currently has one thermal coal interest, the Narrabri mine in Australia. This asset made up 7% of revenue in 2019, but when purchased in 2015 royalties from the mine made up 37% of Anglo Pacific's revenue. It said Monday it expects this to be reduced further as its adds new royalty streams to its portfolio. The company did not say it will sell Narrabri however.
The investment focus will be on greener materials, the company continued, such as more energy efficient iron ore and pellets, base metals used in industries such as energy storage, and battery metals.
Anglo Pacific will release financial results for 2019 on March 25. Shares were 4.7% lower on Monday morning at a price of 145.75 pence each.
By George Collard; [email protected]
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