High returns lure wealthy investors to fund coal as banks exit
Wealthy Australians are emerging as an important pool of capital for financing coal projects shunned by banks.
Fortescue Metals Group on Tuesday said a unit of the company would work with the Papua New Guinea (PNG) government to assess the feasibility of potential projects to develop hydro-power resources.
The deal between Fortescue Future Industries, the PNG government and PNG’s wholly owned corporation Kumul Consolidated Holdings will support green industrial operations for both domestic consumption and exports, the Perth-based firm said.
PNG passed legislation in June reflecting a push by Prime Minister James Marape to lift the country out of poverty by taking a bigger share of wealth from its energy and minerals.
Fortescue said individual projects would be developed subject to completion of feasibility studies and approvals, with ownership and project finance sources to be separately secured.
The world’s fourth-biggest iron ore miner also said it would maintain its dividend policy at a payout ratio of 50% to 80% of net profit after tax.
(By Shriya Ramakrishnan; Editing by Jason Neely)
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