Falling mining investment lending support to Asian coal prices: Fitch

Many global and regional banks have toughened their stance on lending for coal mining, reflecting concerns about climate change and, in some cases, pressure from environmental groups

The long-term outlook for Asian thermal coal prices is improving, amid rising regional demand and falling mining investment, ratings agency Fitch Ratings said in its report. “Mining companies in the region are likely to face less margin pressure than under our previous price assumptions, which, along with lower capex, could support deleveraging,” it said.

However, there are more constraints on their ability to generate new revenue streams, while refinancing risks might also rise for smaller miners.

The current coal price of over $100 a tonne for Newcastle 6,000 kcal – close to a five-year high – looks unsustainable, given the rising supply