Forex Market News Today
  • Home
  • News
  • LiveHourly
  • Markets
  • Stock
  • Business
  • Economy
  • World
  • Politics
  • Energy
  • exchange
  • companies
No Result
View All Result
Forex Market News Today
Home Energy

The end of coal? Why investors aren’t buying the myth of the industry’s ‘renaiss…

3 months ago
in Energy
5 min read
Live Foreign Currency Exchange Rates
Share on FacebookShare on Twitter


Three years ago, pictures of bulk carriers queued off the coast of Mackay in central Queensland were framed as evidence of a “renaissance” in the coal industry.

There were more than 70 coal ships in the offshore gridlock in December 2017. This year there are just 12 waiting – equalling a record low mark set at the height of the coronavirus pandemic.

At the world’s biggest coal export port in Newcastle, no China-bound ships are waiting or scheduled to load before Christmas. More than 50 ships carrying Australian coal are reportedly waiting off the Chinese coast.

In the face of falling coal prices and volumes, the industry and governments have remained bullish about coal’s long-term prospects. They say twin pressures of the pandemic slowdown and China’s ban on Australian coal will ultimately pass.

In an apparent show of faith, the Queensland government took a 9.9% stake in the float of Dalrymple Bay Infrastructure (DBI) – one of two large terminals in Mackay, the main hub for exports from the Bowen Basin. The investment was welcomed by the resources sector as “a clear vote of confidence … in the role of resources in Queensland’s Covid-19 recovery and economic growth for decades to come”.


When the stocks hit the market, DBI tanked, down 16%.

DBI was launched on the Australian stock exchange this week with government backing and the broader market surging. It was the second biggest Australian IPO this year (the largest, tech company Nuix, gained 63% on debut last week). DBI also promised investors a handsome 7% dividend.

When the stocks hit the market, DBI tanked, down 16%. It gained no ground the following day. Investors were not buying the pitch that coal has a rosy future.

“It’s a pivotal moment,” says Tim Buckley, an energy markets expert at the Institute of Energy Economics and Financial Analysis.

“The financial markets do move so much faster than the real world, they are all about constantly reevaluating the risk-return and growth prospects.

“There’s no long-term growth prospect at all for the [coal] industry. It’s like trying to catch a falling knife.”

The bleak outlook

Australia’s biggest super fund, AustralianSuper, has committed to hitting net zero emissions across its $200bn investment portfolio by 2050 – but has not specifically ruled out investing in coal projects.

Nonetheless, its chief executive, Ian Silk, seems less than enthusiastic about the idea.

“The economic outlook for coal stocks generally is incredibly bleak, for obvious reasons,” he says.

He says Aussie would approach any particular coal project on its financial merits.

“But it’s pretty plain by the way we’re so underweight coal that that’s not an attractive sector,” he says.

The Mount Thorley Warkworth mine, near Muswellbrook, supplies international and domestic markets with up to 10 million tonnes of semi-soft coking coal and thermal coal per year



The Mount Thorley Warkworth mine, near Muswellbrook, supplies international and domestic markets with up to 10 million tonnes of semi-soft coking coal and thermal coal per year. Photograph: Jessica Hromas/The…



Go to the news source: The end of coal? Why investors aren’t buying the myth of the industry’s ‘renaiss…

Tags: ArentAustralia newsBusinessBuyingClimate changecoalEnergyenvironmentfossil fuelsindustrysinvestorsmythrenaiss
Previous Post

How Does Exchange Income’s (TSE:EIF) CEO Salary Compare to Peers? – Yahoo Financ…

Next Post

Large Caps Gain in Tehran Share Market

Related Posts

Texas natural gas explosion sparks fire, possibly 10 utility workers injured: re…
Energy

Texas natural gas explosion sparks fire, possibly 10 utility workers injured: re…

by Forex News
March 6, 2021
0

As many as 10 people may have been injured Friday night in a natural gas explosion that sparked a...

Read more
Novel Method to Measure Offshore Methane Emissions
Energy

Novel Method to Measure Offshore Methane Emissions

by Forex News
March 5, 2021
0

Neptune Energy and Environmental Defense Fund (EDF) announced a scientific collaboration to test a first-of-its-kind approach for measuring oil...

Read more
Wyoming Coal Country Pivots, Reluctantly, to Wind Farms
Energy

Wyoming Coal Country Pivots, Reluctantly, to Wind Farms

by Forex News
March 4, 2021
0

RAWLINS, Wyo. — The coal layered underground helped bring settlers to this scrubby, wind-whipped part of southern Wyoming, where...

Read more
U.S. readies $40 billion in loans to boost clean energy
Energy

U.S. readies $40 billion in loans to boost clean energy

by Forex News
March 4, 2021
0

© Reuters. FILE PHOTO: Former Michigan Governor Jennifer Granholm testifies before the Senate Energy and Natural Resources Committee in...

Read more
Race for EV batteries pits conservationists against green energy | Automotive In…
Energy

Race for EV batteries pits conservationists against green energy | Automotive In…

by Forex News
March 3, 2021
0

Last September, in the arid hills of northern Nevada in the US, a cluster of flowers found nowhere else...

Read more
Big Oil Faces Off Against Clean-Energy Giants
Energy

Big Oil Faces Off Against Clean-Energy Giants

by Forex News
March 2, 2021
0

A battle for clean-energy assets is brewing between green-minded oil giants and the utility companies that currently dominate the...

Read more
How this thin, flexible film converts any light into clean energy
Energy

How this thin, flexible film converts any light into clean energy

by Forex News
March 1, 2021
0

The Biden administration is calling for action in order to stem climate change for a wide range of sectors,...

Read more
This Energy Sector Will See The Next Big M&A Wave
Energy

This Energy Sector Will See The Next Big M&A Wave

by Forex News
March 1, 2021
0

Environmental, social, and governance investment is inarguably one of the hottest trends in financial markets. Investors are pressuring companies...

Read more
Joe Biden’s energy sec. Jennifer Granholm floats idea of Texas joining national …
Energy

Joe Biden’s energy sec. Jennifer Granholm floats idea of Texas joining national …

by Forex News
February 28, 2021
0

President Joe Biden's newly sworn in energy secretary Jennifer Granholm floated the idea of Texas joining the national grid.Granholm...

Read more
Griddy banned from Texas power marker over payment breach
Energy

Griddy banned from Texas power marker over payment breach

by Forex News
February 27, 2021
0

The Texas energy company Griddy has been banned from participating in the state’s power market, according to a report....

Read more
Next Post
Large Caps Gain in Tehran Share Market

Large Caps Gain in Tehran Share Market

Subscribe
Login
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Latest Forex News

Euro: USD/EUR (EUR=X) Some dollar volatility

Euro: USD/EUR (EUR=X) Some dollar volatility

3 months ago
Second EDD audit details mismanagement, lies, billions in unemployment fraud

Second EDD audit details mismanagement, lies, billions in unemployment fraud

1 month ago
Coronavirus surge will spark ‘reckoning’ on Wall Street: Art Hogan

Coronavirus surge will spark ‘reckoning’ on Wall Street: Art Hogan

2 months ago
India has reportedly asked WhatsApp to withdraw privacy policy update

India has reportedly asked WhatsApp to withdraw privacy policy update

2 months ago

Today Market News

Live Foreign Currency Exchange Rates
Economy

Food scarcity fears prompt plan to ease post-Brexit checks on EU imports | Brexi…

March 6, 2021
Myanmar coup: India asked to return police officers who crossed border – BBC New…
World

Myanmar coup: India asked to return police officers who crossed border – BBC New…

March 6, 2021
Demand Dips For Bitcoin Are Temporary; But Lack Of Supply Is Permanent
Live

Bitcoin has been declared ‘dead’ 402 times since its inception. Here’s how you c…

March 6, 2021
F.A.Q. on Stimulus, Unemployment and Tax Rebates
Economy

F.A.Q. on Stimulus, Unemployment and Tax Rebates

March 6, 2021
To Juice the Economy, Biden Bets on the Poor
Economy

To Juice the Economy, Biden Bets on the Poor

March 6, 2021
Sensex jumps 617 points to end at record high, Nifty at 15,115; auto stocks lead
Live

Sensex jumps 617 points to end at record high, Nifty at 15,115; auto stocks lead

March 6, 2021
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA

© 2020 Siteofforex.com

No Result
View All Result
  • Home
  • News
  • Live
  • Markets
  • Stock
  • Business
  • Economy
  • World
  • Politics
  • Energy
  • exchange
  • companies

© 2020 Siteofforex.com

wpDiscuz