Mitsubishi Corporation is reportedly selling its interest in two Australian thermal coal mines for AUS$750 million to its joint venture (JV) partners Glencore and Sumitomo Corp. This decision represents the end of its involvement in upstream fossil fuels.
According to one source, the company is to sell its 31.4% stake in the Clermont coal mine to GS Coal, the 50/50 JV between Glencore and Sumitomo, as well as its 10% stake in the Ulan coal mine to Glencore.
Since 2016, Mitsubishi has been shifting its focus toward its non-resources businesses, which range from agricultural machinery to industrial finance and cars.
The deal signed back in December means the Japanese company will no longer have any dealings in thermal coal operations, although it is keeping its metallurgical coal mines, which it considers key assets.
The deal came concurrently to the International Energy Agency (IEA) predicting that global coal demand will edge higher until 2023, mainly thanks to India and other Asian countries, which will offset a decline in Europe and the US.
This also follows an agreement last week among 200 countries to implement rules outlined in the Paris Agreement, the landmark 2015 global pact aimed at curbing emissions from fossil fuels.
Coal remains the second largest global source of primary energy, behind oil, and the largest source of electricity.
Read the article online at: https://www.worldcoal.com/mining/08012019/mitsubishi-to-sell-stake-in-two-coal-mines-ending-involvement-in-thermal-coal/