By Clara Denina

LONDON, (Reuters) – Anglo American (LON.) This mining group, which sold its thermal coal mines in response to investor pressure, said it plans to preserve its steelmaking portfolio, as they are confident that investors will not push for an early exit.

Anglo sold its South African stake in the Colombian mine it owned to Glencore (OTC) following shareholder demands to abandon this more polluting fuel and meet emission targets.

The price of thermal coal (which is used to make steam for electricity) rose from $57 per tonne in 2020 to $280 in 2021. This generated strong returns for new owners.

In an interview with Reuters Next, boss Mark Cutifani stated that thermal coal created disincentives for us. However, the EBITDA this year will be lower. But… we’re still playing the long-game.”

Cutifani explained that although thermal coal is a tiny part of Anglo’s platinum, nickel, diamond and other portfolios, it had prevented large investors who wanted to own its shares.

Anglo produces also metallurgical coal, or’met,’ which is key ingredient in steelmaking.

The global carbon footprint of steelmaking can reach up to 9.9%. Steelmakers are striving to find technology that will meet climate commitments.

He said that the conversation about met coal had matured and that they are now arguing that they are the best owners of these assets for at least the next fifteen years. This argument appears to have been resonating well with shareholders.”

Anglo’s coking coal mines have a short lifespan until 2040.

Many shareholders have begun to embrace the idea of owning shares in coal companies, which pledge to take down their mines with care rather than selling them.

Mduduzi Bhutlose, Portfolio Manager at South Africa’s Public Investment Corporation (PIC), stated: “We look at sustainability. You don’t want a pullout from an investment and ruin livelihoods or communities.”

According to Refinitiv data, PIC is Anglo’s biggest shareholder. It holds 6.9%.

Bhulose from PIC stated that in the case that anyone decides to leave any metal they should do so responsibly. Anglo has proven that this is possible.

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