HSBC Holdings Plc will stop providing finance for new metallurgical coal mines, according to an updated energy policy on December 2022.
It can be expected that more banks will join in the restrictions on new metallurgical coal mines as they have already had policies on ending support to thermal coal mines, considering increasing countries are turning away from coal to alternative technologies in steel production to meet carbon emission goals.
China saw its crude steel production fall for the second straight year in 2022. The world's largest steel-producing and consuming country targets to peak steel emissions no later than 2030 and increase production from scarp steel through coal-free electric arc furnaces from 9% to 15% by 2025.
Some metallurgical coal miners also plan to stop new coal mine constructions.
Australian miner South32 said in August 2022 that it will not invest any further metallurgical coal projects and will cut coal bustiness as some of the existing coal resources are depleting. Canadian miner Teck Resources said it will not develop more metallurgical coal capacity. BHP siad it has no growth capital allocated to metallurgical coal.
(Writing by Emma Yang Editing by Tammy Yang)
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