JOHANNESBURG – Decarbonisation of coal mining company Exxaro’s operations and entire value chain is an urgent imperative to reduce carbon dioxide emissions, which will result in the additional benefits of avoiding market barriers, fines and the loss of social licence to operate.
“We are aware as well of the increasing scrutiny and pressure to which coal companies are subjected. This manifests through the exit of some international investors from the sector, while multinationals reorganised their portfolios. the continued increase in interest rates by the US Federal Reserve contributing to the lingering retreat of global markets and the softening of commodity prices
The preservation results in under-investment in new projects in mining and slower mergers and acquisitions activity in the industry. Although we have seen several high-value transactions within the M&A landscape, this has largely been driven by a few major mining companies, concentrated on scarce operational top-tier assets.
The dynamics that have played out over the first six months of this year to June 30 reiterate that rapid and unpredictable change will continue to unfold. Changes in the global trade flows were evident as Australia resumed supply into China in the first half after it had been halted since December of 2021, while the Russian supplies to Europe and Japan reduced materially.