Latest news with #WhitehavenCoal
The Guardian
9 hours ago
- Business
- The Guardian
AustralianSuper criticised for buying up shares in Whitehaven Coal while claiming to be committed to net zero
A major Australian superannuation fund is under fire for substantially increasing its investment in the coal company Whitehaven, and being on the brink of becoming its biggest backer, while still claiming to be committed to reaching net zero emissions. Shareholder advocacy groups said AustralianSuper was moving against the trend of its peers with recent share purchases in the company, which they said were 'flying in the face of environmental, social and governance (ESG) commitments'. Clean energy finance organisation Market Forces said the super fund was 'on the precipice' of becoming Whitehaven Coal's largest investor, with shares worth about $395m. Recent disclosures by Whitehaven, first reported by the Australian Financial Review, reveal AustralianSuper now owns 70.9m shares in the company, or 8.47% of shares on issue, after the recent purchases. AustralianSuper is the second-largest shareholder in the coal company and, according to Market Forces, holds nearly triple the combined shares of all of the other top 30 super funds in their default investment options, based on the latest disclosures effective as at December 2024. Market Forces said 'after fully and publicly divesting from the company in 2020', AustralianSuper now held its biggest interest in Whitehaven in 10 years. Sign up to get climate and environment editor Adam Morton's Clear Air column as a free newsletter 'How on earth can AustralianSuper call itself a responsible investor after buying millions of shares in Whitehaven Coal?' Market Forces' senior analyst, Brett Morgan, said. 'AustralianSuper is backing Whitehaven's expansion plans, which would result in nearly 5bn tonnes of carbon pollution from burning coal, equivalent to running all of Australia's coal-fired power stations until 2062.' Morgan said the organisation had been contacted by dozens of AustralianSuper members concerned 'that their fund is greenwashing and endangering a safe future for their retirement'. An AustralianSuper spokesperson said the fund remained committed to its long-term goal of net zero by 2050. 'Whitehaven's acquisition of BHP's metallurgical coal assets changed the company's revenue profile and made it a more attractive investment given their importance in steel making,' the spokesperson said. Metallurgical coal is used primarily to make steel while thermal coal is primarily used for electricity generation. Sign up to Clear Air Australia Adam Morton brings you incisive analysis about the politics and impact of the climate crisis after newsletter promotion 'The energy transition is not linear, which means thermal coal will be an important stabilising source of electricity for the grid for some time to come, both domestically and overseas.' But Naomi Hogan, from the Australasian Centre for Corporate Responsibility, said climate-aware investors across the superannuation sector had been making an effort on ESG and emissions reductions and 'this AustralianSuper move is going against the trend of its peers'. 'Metallurgical coal investing cannot be used to shield against scrutiny of coal,' Hogan said. 'Last year ACCR published research based on a global survey of 500 investors in the steel value chain, which found that 80% of investor respondents believe metallurgical coal's risk profile will increase in the next decade.' Hogan said AustralianSuper, having previously 'talked up' the importance of its companies aligning with the objectives of the Paris Agreement, now has a 'huge amount of work ahead to bring [Whitehaven's] emissions into line'. 'ACCR will be looking closely at AustralianSuper's disclosures outlining its ESG risk assessment of this investment,' she said.
Business Recorder
29-04-2025
- Business
- Business Recorder
Banks, miners boost Australian shares higher; Fortescue shines
Banks pulled Australian shares higher for a fourth straight session on Tuesday, supported by miners as Fortescue gained on higher quarterly iron ore shipments. The S&P/ASX 200 index gained 0.6% to 8,043.30 points by 1251 GMT. The benchmark had ended 0.4% higher on Monday. Rate-sensitive financials climbed for a ninth straight session ahead of the first-quarter inflation print on Wednesday. The 'Big Four' lenders gained between 0.1% and 0.4%. Banks propel Australian shares higher; local inflation data eyed The inflation data is estimated to show a marginal drop, building the case for an interest rate cut by the Reserve Bank of Australia in May. Miners rose 0.4%. Fortescue, the world's fourth largest iron ore producer, hit its highest since March 28 on delivering higher third-quarter iron ore shipments after a train derailment hampered exports a year ago. Whitehaven Coal, the country's biggest independent coal miner, jumped as much as 4.4% to its highest since April 15 on producing 9.2 million metric tons of coal in the third quarter, beating a Visible Alpha consensus estimate. BHP Group and Rio Tinto were up 0.3% and 0.8%, respectively. Energy stocks traded 0.9% higher to hit the highest since April 4, led by a 0.3% increase in Woodside Energy on greenlighting a $17.5 billion Liquefied Natural Gas (LNG) project in Louisiana. Technology stocks gained 1.3%, while healthcare stocks added 0.3%. New Zealand's benchmark S&P/NZX 50 index slipped 0.1% to 12,086.05 points.
AU Financial Review
29-04-2025
- Business
- AU Financial Review
Big mining's decade of inflationary pressure is ending
A decade of inflationary pressures in the mining sector appears to be over, with bulk commodity producers Fortescue, Whitehaven Coal and Stanmore Resources telling investors their unit costs were tracking lower. Lower commodity prices and a weaker Australian dollar have driven the trend, which is being accelerated by rising unemployment and, in some cases, deferral of spending on growth projects.
Reuters
29-04-2025
- Business
- Reuters
Australia's Whitehaven warns weather to drive coal prices higher as quarterly output falls
April 29 (Reuters) - Australia's Whitehaven Coal ( opens new tab warned on Tuesday that weather conditions would put pressure on both metallurgical and thermal coal prices in the near term, while reporting a 5% sequential decline in its third-quarter production, ahead of analysts' expectations. Parts of the northeastern Australian state of Queensland experienced heavy rainfall during the March quarter. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. "Recent weather-related supply disruptions and possible supply curtailments may create some upward price pressure," Whitehaven said in its statement. Thermal coal, Whitehaven's primary product, is used for electricity generation while metallurgical is used in steel production. The coal miner recorded managed run-of-mine (ROM) coal production of 9.2 million metric tons for the three months ended March 31, compared with 9.7 million tons reported in the previous quarter. The production exceeded a Visible Alpha consensus estimate of 8.5 million tons. The Narrabri mine, the company's only underground operation, reported a 31% fall in ROM production due to equipment failures, which took time to resolve, resulting in decreased output. The overhaul move, which started in April, would take around eight weeks to complete, leading to lower production and sales volumes from the mine in the second half of fiscal 2025, the miner added. Operations in Queensland — consisting of the Daunia and Blackwater mines — saw a 3% drop in ROM production during the March quarter to 4.5 million tons. The Daunia mine's output for the period declined by 18% from the previous quarter, largely due to excessive rainfall in Queensland. Blackwater mines, however, shrugged off seasonal weather woes to produce higher coal for the quarter. Whitehaven acquired both the Daunia and Blackwater mines from global miner BHP ( opens new tab for $4.1 billion in 2024. Shares of Whitehaven were up 3.8%, hitting a two-week high, as of 0059 GMT. ($1 = 1.5564 Australian dollars)
Reuters
15-04-2025
- Business
- Reuters
Small countries sit at nexus of tariff trade-offs
MELBOURNE, April 15 (Reuters Breakingviews) - Among the many absurdities of Donald Trump's global trade war is the inclusion of Singapore and Australia on his naughty list. The U.S. President slapped the 10% baseline tariff, which will apply to nearly all countries, on both with very little justification. Neither state has, to use Trump's ill-judged words, "looted, pillaged, raped and plundered" the United States. Far from it: Australia has, at almost $18 billion, one of the largest goods trading deficits with Washington; Singapore is not far behind at $13 billion. Both boast a free trade agreement with America. The two are strong security partners for Uncle Sam, too. They are long-standing buyers of U.S. weaponry, have pledged to increase defence spending, and they provide bases for American troops. In fact, there are now more of them on Australian soil than at any time since the end of the Second World War. Sure, there are a few quibbles, like U.S. beef farmers' access to the Australian market, which Trump complained about on his self-styled "Liberation Day" on April 2. But that's small beer - and Singapore doesn't even seem to have anything similar to warrant its inclusion. That's likely to make it hard to negotiate away the 10% tariff. In fact, Singapore Prime Minister Lawrence Wong last week told parliament he doubts, opens new tab that's possible, adding if the duty were meant to target surpluses, his country's tariff should be zero. Of course, Trump may yet decide to make removing the blanket levy dependent on the willingness of partners to help Washington squeeze China, on which he has imposed a 145% import tax. That would be a nightmare scenario. The People's Republic is the largest export market for both small countries. Canberra is particularly exposed, as China accounts for, at some $135 billion last year, around a third of all Australian goods sold overseas. Such over-reliance has already proven risky: a 2020 spat over COVID-19's origins prompted Beijing to put tariffs of up to 200% on imports of Aussie coal, wine, lobster and other products for several years. The shock prompted companies like Treasury Wine Estates ( opens new tab and Whitehaven Coal ( opens new tab to find new customers abroad. In response to Trump's moves, Prime Minister Anthony Albanese's government is now trying to revive a free-trade agreement with the European Union and woo countries from Indonesia to India to the United Arab Emirates. Diversifying away from China makes more sense than ever but there are limits to how far Asia-Pacific countries can look beyond their backyard. Follow @AntonyMCurrie, opens new tab on X CONTEXT NEWS The Australian government on April 10 turned down a proposal from Beijing to "join hands" to counter U.S. tariffs. The offer came in an article China's ambassador to the country, Xiao Qian, wrote in The Age, a Melbourne-based newspaper. Singapore's Prime Minister on April 8 said the trade levies imposed by the U.S. President Donald Trump "are not actions one does to a friend", echoing similar words spoken by Australian Prime Minister Anthony Albanese. The Trump administration on April 2 said it would impose a 10% tariff on goods from Singapore and Australia, even though it has a trade surplus with both countries. For more insights like these, click here, opens new tab to try Breakingviews for free. Editing by Una Galani and Aditya Srivastav Breakingviews Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time. Sign up for a free trial of our full service at and follow us on Twitter @Breakingviews and at All opinions expressed are those of the authors.
