{"id":1130923,"date":"2021-12-18T16:14:07","date_gmt":"2021-12-18T21:14:07","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1130923"},"modified":"2021-12-18T16:14:09","modified_gmt":"2021-12-18T21:14:09","slug":"a-plan-to-buy-coal-mines-and-close-them-down-got-rejected-by-investors-report","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/a-plan-to-buy-coal-mines-and-close-them-down-got-rejected-by-investors-report\/","title":{"rendered":"A Plan To Buy Coal Mines And Close Them Down Got Rejected By Investors: Report"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fa-plan-to-buy-coal-mines-and-close-them-down-got-rejected-by-investors-report%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1130923&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Citigroup and other firms attempted to launch a fund that would purchase coal mines and close them by 2040, according to The Wall Street Journal; however, the project was allegedly abandoned upon several rejections from investors.<\/p>\n<p><a href=\"https:\/\/www.wsj.com\/articles\/investors-balk-at-plan-to-buy-coal-mines-and-close-them-11639829583?mod=hp_lead_pos5\">The Wall Street Journal<\/a> reported:<\/p>\n<p>The bank teamed up with commodities trader Trafigura Group Pte. Ltd. and Resource Capital Funds, a private-equity firm, to pitch an investment vehicle earlier this year known as Coal to Zero. The fund planned to buy mines in the U.S., Australia and South Africa and run them with the promise of shutting them down by 2040, according to people familiar with the matter and a marketing document seen by The Wall Street Journal.<\/p>\n<p>The fund was trying to solve a thorny problem in the green-energy world. Some energy and mining companies have divested coal assets under the pretense of cutting carbon emissions or appeasing shareholders, only to sell them on to owners happy to run them indefinitely. The fixed end date was a compromise.<\/p>\n<p>In addition to the early shutdown plan, the fund would have kept 75% of its coal in the ground. The Wall Street Journal adds that investors were reportedly uneasy with the project:<\/p>\n<p>Some pension funds and other potential investors balked at the investment vehicle because they didn\u2019t want to face criticism for investing in fossil-fuel projects despite the fund\u2019s goal of accelerating the retirement of coal mines, according to some of the people familiar with the matter. The group\u2019s failure to bring financial backers on board demonstrates how taboo thermal coal has become in the investment world.<\/p>\n<p>Another challenge stemmed from fast-moving changes of direction from governments about the future of coal in the energy mix, some of the people said. Germany\u2019s new government, for example, recently said it aims to bring forward the country\u2019s target for shutting coal power plants to 2030 from 2038. This made it difficult to finalize retirement dates for mines and set the fund\u2019s financial objectives.<\/p>\n<p>Indeed, the White House\u2019s emphasis on clean energy projects \u2014 and its <a href=\"https:\/\/www.dailywire.com\/news\/biden-admin-recommends-tighter-constraints-on-new-oil-and-gas-drilling-amid-energy-crisis\">attempts<\/a> to stem nonrenewable energy production \u2014 has led American investment banks to grow hesitant over coal projects. In a recent <a href=\"https:\/\/www.wvtreasury.com\/Portals\/wvtreasury\/Fossil%20Fuel%20Banking%20Letter%20Nov%2022.pdf\">letter<\/a>, the financial officers of 16 Republican states <a href=\"https:\/\/www.dailywire.com\/news\/un-american-republican-state-financial-officers-call-for-banks-to-stop-catering-to-bidens-coal-and-oil-policies\">announced<\/a> that they would \u201cbe taking collective action in response to the ongoing and growing economic boycott of traditional energy production industries by U.S. financial institutions.\u201d<\/p>\n<p>\u201cAs the Obama Administration\u2019s War on Coal demonstrated, reckless attacks on law-abiding energy companies cut off paychecks for workers and take food off the tables of hard-working families,\u201d said the officials. \u201cThe Biden Administration has resumed these attacks by attempting to ban energy exploration on public lands and reportedly pressuring U.S. banks and financial institutions to limit, encumber, or outright refuse financing for traditional energy production companies.\u201d<\/p>\n<p>\u201cWe have a compelling government interest, when acting as participants in the financial services market on behalf of our respective states, to select financial institutions that are not engaged in tactics to harm the very people whose money they are handling,\u201d the letter continued. \u201cFurther, we have the responsibility, as fiduciaries and stewards of more than $600 billion, to ensure that our financial service providers are free from harmful conflicts of interest that could jeopardize state funds.\u201d<\/p>\n<p>\u201cAny financial institution that has adopted policies aimed at diminishing a large portion of our states\u2019 revenue has a major conflict of interest against holding, maintaining, or managing those funds.\u201d<\/p>\n<p>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <a href=\"https:\/\/www.dailywire.com\/subscribe\">member<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Citigroup and other firms attempted to launch a fund that would purchase coal mines and close them by 2040, according to The Wall Street Journal; however, the project was allegedly abandoned upon several rejections from investors.The Wall Street Journal reported:The bank teamed up with commodities trader Trafigura Group Pte. Ltd. and Resource Capital Funds, a private-equity firm, to pitch an investment vehicle earlier this year known as Coal to Zero. The fund planned to buy mines in the U.S., Australia and South Africa and run them with the promise of shutting them down by 2040, according to people familiar with the matter and a marketing document seen by The Wall Street Journal.The fund was trying to solve a thorny problem in the green-energy world. Some energy and mining companies have divested coal assets under the pretense of cutting carbon emissions or appeasing shareholders, only to sell them on to owners happy to run them indefinitely. The fixed end date was a compromise.In addition to the early shutdown plan, the fund would have kept 75% of its coal in the ground. The Wall Street Journal adds that investors were reportedly uneasy with the project:Some pension funds and other potential investors balked at the investment vehicle because they didn\u2019t want to face criticism for investing in fossil-fuel projects despite the fund\u2019s goal of accelerating the retirement of coal mines, according to some of the people familiar with the matter. The group\u2019s failure to bring financial backers on board demonstrates how taboo thermal coal has become in the investment world.Another challenge stemmed from fast-moving changes of direction from governments about the future of coal in the energy mix, some of the people said. Germany\u2019s new government, for example, recently said it aims to bring forward the country\u2019s target for shutting coal power plants to 2030 from 2038. This made it difficult to finalize retirement dates for mines and set the fund\u2019s financial objectives.Indeed, the White House\u2019s emphasis on clean energy projects \u2014 and its attempts to stem nonrenewable energy production \u2014 has led American investment banks to grow hesitant over coal projects. In a recent letter, the financial officers of 16 Republican states announced that they would \u201cbe taking collective action in response to the ongoing and growing economic boycott of traditional energy production industries by U.S. financial institutions.\u201d\u201cAs the Obama Administration\u2019s War on Coal demonstrated, reckless attacks on law-abiding energy companies cut off paychecks for workers and take food off the tables of hard-working families,\u201d said the officials. \u201cThe Biden Administration has resumed these attacks by attempting to ban energy exploration on public lands and reportedly pressuring U.S. banks and financial institutions to limit, encumber, or outright refuse financing for traditional energy production companies.\u201d\u201cWe have a compelling government interest, when acting as participants in the financial services market on behalf of our respective states, to select financial institutions that are not engaged in tactics to harm the very people whose money they are handling,\u201d the letter continued. \u201cFurther, we have the responsibility, as fiduciaries and stewards of more than $600 billion, to ensure that our financial service providers are free from harmful conflicts of interest that could jeopardize state funds.\u201d\u201cAny financial institution that has adopted policies aimed at diminishing a large portion of our states\u2019 revenue has a major conflict of interest against holding, maintaining, or managing those funds.\u201dThe Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a member.<\/p>\n","protected":false},"author":99,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1130923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1130923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1130923"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1130923\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1130923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1130923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1130923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}