In the investment market is the outflow of money from miners to manufacturers of soft drugs
Promotions producers of cannabis and cryptocurrency market are some of the alternative assets that distract retail investors from mining companies. About it reports Reuters with reference to data of the analytical centre Preqin. According to analysts, private equity funds in the mining sector has attracted about $ 300 million by 2019, which is one fifth of the amount raised in 2009, slightly more than 200 million of investment in 2014, during the global financial crisis.
From extractive industries even faster leaving large state investors. The sovereign wealth Fund of Norway last year got rid of all of their shares in the production of fossil fuels and the world's largest asset Manager Blackrock said on 14 January that sell active stakes in companies generating more than 25% of its revenues from thermal coal.
"If you are small producer of coal, I don't think you even have any chance to collect any money," says Fred white, Deputy Director of Medea Capital Partners in London. "There is still a huge market and a huge demand [for coal], but it is not financed by Western banks", - he added. Instead of interfering with local trading houses and lenders.
According to the International energy Agency, coal accounts for nearly 40% of global electricity production and more than 40% of carbon dioxide emissions related to energy.
Reduction of capital, which began about two years ago, in recent years has accelerated, says Julian Treger, General Director of Anglo Pacific Group. It is estimated that the average cost of capital for mining projects at early stages increased by two percentage points over the past two years.
"Even for companies that have good projects, it is very difficult to raise money in these markets," said Caroline Donally, managing Director of private equity firm Denham Capital in Houston. "Previous investors who could provide the stock seems to have moved. A number of specialized funds have closed their shops, and station wagons no longer invest in commodities," he said Donelli.
the Government of Federal Chancellor Angela Merkel wants zoperation close all coal-fired power plant Germany no later than 2038 under the measures aimed at achieving the reduction targets of greenhouse gas emissions by 55% from 1990 levels by 2030.
October 30, 2019, the largest coal company in the United States Murray Energy Corp. declared bankruptcy amid the ongoing fall in world demand for coal.
According to research by Citi, the average price of stone coking coal amounted to 185 U.S. dollars per ton in 2019, and will fall to 170 USD per ton in 2020, $ 160 per ton in 2021 and $ 150 per ton in 2022.
the engine of consumption in the global coal market remains China, which accounts for about half of total demand. In recent years, Beijing seeks to increase the consumption of Chinese coal due to supply constraints from other countries, e.g. Australia, which also puts pressure on prices.