Exxaro races against time as the world shuns dirty coal
Investors may start to see a different capital profile emerge in the next two years, says CEO Mxolisi Mgojo
Exxaro Resources plans to push forward new projects in hopes that its coal production can outpace a rising global tide against fossil fuels. “There are winds of change that we see at a distance, with regard to the sentiment toward fossil fuels and global warming,” Exxaro CEO Mxolisi Mgojo said at a presentation of the mining company’s annual results on Thursday. “The way we are looking at our assets, it’s not so much about the amount of coal in the ground, but about how to extract value earlier,” he said. Investors may start to see a different capital profile emerge in the next two years, focused on bringing high quality coal into production earlier, Mgojo said. Around the globe it is becoming increasingly difficult to secure funding for new coal projects as concerns over climate change grow, and the move away from fossil fuels gains momentum. Globally, major banks are giving in to societal pressure to stop funding coal-related projects and domestic banks have started to follow suit...
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