Environmental, social & governance (ESG) concerns have driven money into specialized ESG funds which often exclude mining stocks among other ‘dirty’ assets. The average cost of capital for early-stage mining projects rose by two percentage points over the past two years, he estimates. COAL PROJECTS FLOUNDERCoal miners – especially those extracting thermal coal, burnt to produce electricity – are bearing the brunt of the sustainable investing trend. Thermal coal accounts for nearly 40% of the world’s electricity generation and more than 40% of energy-related carbon dioxide emissions, according to the International Energy Agency. South Africa’s Nedbank has stopped funding coal-related projects, while FirstRand cut greenfield thermal coal projects to less than 0.5% of its lending.

Source: Pakistan Today February 02, 2020 07:52 UTC