German non-profit Urgewald, in collaboration with 10 partner organizations, launched on Thursday the first-ever Metallurgical Coal Exit List (MCEL), which identifies the main companies driving hundreds of new metallurgical coal projects and expansions, in an effort to dissuade investors from supporting them.
MCEL lists 160 companies and 252 new metallurgical coal projects across 18 countries, which the group says could boost annual met coal production by half, equivalent to 551 million tonnes.
“Financial institutions need to wake up and stop bankrolling the reckless expansion of this industry,” Heffa Schuecking, director of Urgewald, said in a release.
Hundreds of financial institutions are already using Urgewald’s Global Coal Exit List (GCEL) to restrict their financial flows to the thermal coal sector, Schuecking said.
“The MCEL is a new sister database that focuses exclusively on metallurgical coal and highlights which companies are planning new mines or extensions,” she said.
Global emissions fight
As the Paris Agreement marks its 10th anniversary, the target of limiting a global temperature rise by 1.5°C seems increasingly unattainable. The iron and steel sector, heavily reliant on met coal, contributes a staggering 11% of global CO2 emissions. While metallurgical coal has long been seen as indispensable, advances in green steel technology present a path to phasing out coal reliance, Schuecking says.
The MCEL highlights stark contradictions in the industry’s actions. Despite the International Energy Agency (IEA) confirming that existing met coal production can meet demand through 2050, major companies are still planning expansions.
Top developers include Australia’s BMA, aiming to extend the Peak Downs mine lifespan to 2116, and Russia’s A-Property, spearheading two colossal mining projects despite ties to U.S.-sanctioned entities.
Australia, Russia and China dominate the expansion landscape, with Australia leading as the top exporter. India and Japan, key consumers of Australian met coal, continue to deepen their reliance on these exports. Japan’s Nippon Steel holds a stake in the Bulga mine, while India’s JSW Steel recently invested in Australian coking coal operations.
Critics argue these expansions reflect a broader trend of coal companies rebranding their portfolios to secure financing. Lia Wagner, head of met coal research at Urgewald, noted, “Many thermal coal producers are trying to polish their dirty public image by adding more met coal to their portfolios.”
The U.K. government faced backlash last year after its approval of a “net-zero” met coal mine was overturned by the High Court of Justice based in London. The ruling acknowledged the sector’s emissions intensity, underscoring the need for robust decarbonization policies, the NGOs said in a statement.
Urgewald’s MCEL aims to bring transparency to the often-overlooked metallurgical coal sector, calling on financial institutions to act. The database is publicly accessible at coalexit.org/mcel.
Great!…private equity firms can use this list to help make profitable acquisitions in met coal. Thanks, NGOs for doing the heavy lifting and documenting all these great investment opportunities!