ESG-Minded Investors Pile Into Coal Stock, Sparking 1,000% Rally
Abrdn and Schroders are among Thungela Resources’s largest shareholders, even after committing to reducing financed emissions.
Thungela’s coal mine in Vosman, Mpumalanga.
Photographer: Luca Sola/AFP/Getty Imates
Anglo American Plc’s spinoff, Thungela Resources Ltd., has emerged as the world’s best-performing major coal stock. It’s also one of the most profitable bets by a group of fund managers who’ve promised to reduce their financed greenhouse gas emissions.
Since its June listing, the South African company is up roughly 1,000% amid a rebound in demand for the dirtiest fossil fuel. Thungela Chief Executive Officer July Ndlovu has said he’s planning to develop new coal resources, noting the company is now free of an owner that had questioned further investment in mining.