Anglo Pacific open to selling thermal coal royalties to boost ESG credentials
Mining streaming company Anglo Pacific could be open to selling its thermal coal royalties to accelerate its transition away from the most polluting fossil fuel, chief executive Julian Treger said on Wednesday.
The London-listed company aims to decrease its reliance on coal and steel and attract a broader base of investors by adding more battery metals, including lithium, manganese and copper, to its streaming and royalty portfolio, Treger said.
A form of mining financing, royalties are payments that give the owner the right to receive a percentage of production from a mining operation, or retain a stake in it, in exchange for upfront payments to the producer.
Anglo Pacific has recently bought a share of cobalt production from Vale's Voisey's Bay mine in Canada for $205-million, marking the start of the transition to cleaner resources.
Cobalt, whose price has quadrupled in two years, is also one of the metals used to make batteries for electric vehicles.
With this acquisition, Anglo's exposure to coal and steel has gone down to around 20%, from 50% previously, but the company aims to take that "well below 20% by the end of the year via further acquisitions," Treger said.
The company is working on a base metals transaction that will require an upfront payment of $50-million, it previously said.
Its main thermal coal asset, Narrabri in Australia, contributed less than 10% to the company's 2020 revenue.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation