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Citi and Trafigura Are Pitching ‘Coal to Zero’ Mining Vehicle

  • The vehicle will buy mines and commit to close them by 2045
  • Large mining companies are seeking to exit thermal coal
Coal Mining at Raspadskaya PJSC As Evraz Mulls Demerger
Photographer: Andrey Rudakov/Bloomberg
Updated on

Citigroup Inc. has been sounding out investors for a new coal-mining vehicle that it says could help limit the unintended consequences from large producers moving to exit the business.

The world’s biggest mining companies are under pressure from investors to stop producing thermal coal, the most polluting fuel, but face a conundrum over what to do with their assets. The mines will still keep producing under new owners, limiting any real benefit to the environment, and there’s a risk that whoever buys them may face less environmental and social scrutiny than the large, listed resource companies.