Almost 80% of lignite and hard coal-fired generators will be unprofitable this year, a hit the industry is unlikely to survive without government help.
In an open letter, investors including Aberdeen Standard Investments, M&G Investments and Legal & General Investment Management said that all lobbying by third parties should be consistent with mining companies’ views and producers should exit lobby groups if this isn’t the case.
The global collapse in coal prices this year has dealt a particularly heavy blow to miners in Indonesia, the top exporter and one of the largest producers of the fuel.
After freezing out Rio Tinto for more than a decade for owning a highly polluting copper mine, one of the world’s biggest sovereign wealth funds has brought the company back into the fold.