Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Canada’s Desjardins, the largest association of credit unions in North America, may no longer fund energy pipelines due to their potential impact on the environment, and has decided to suspend lending for such projects until September.
The Quebec-based financial institution, a backer of Kinder Morgan’s expansion of its Trans Mountain pipeline, has been evaluating its pipeline-related policy for months and said it may make the decision of not financing those kinds of projects permanent before year-end, Le Devoir reported (in French).
Such a move would mean that other high-profiles projects, including TransCanada Corp’s Keystone XL and Energy East and Enbridge’s Line 3, would have to look elsewhere for funds.
Currently, the Canadian lender is one of 24 financial institutions that agreed to back a subsidiary of Kinder Morgan Canada (TSX:KML) , majority owned by US-based Kinder Morgan.
The announcement from Desjardins comes shortly after the ING Group clarified that it would not directly finance any of the four proposed oil sands sands pipelines (Trans Mountain expansion, Keystone XL, Line 3 and Energy East). It also follows Sweden’s largest pension fund —AP7 —decision to divest from TransCanada, as it considers building new pipelines incompatible with the Paris climate agreement.
3 Comments
earlrichards
Kinder Morgan’s pipeline is a stupid idea to begin with, because there is no equipment to clean-up a dirty, tar sands spill. This stupid idea is an insult to the intelligence of the British Columbian people. The toxic, tar sands are riddled with cancer-causing, carcinogens.
Nordbird
They are basically twinning an existing pipeline with an excellent safety record.
Personally, I am divesting from tofu producers, since tofu contains powerful neuro-toxins that affect the right side of the brain… lol
marpy
Trudeau has approved this pipeline expansion and the existing line has had a excellent safety record since it was built. Based on the comments below, I see the anti anything but green crowd is out in full force peddling their misinformation and baked propaganda. 😉