Miners face funding squeeze as green investing surges

(Reuters, 3 Feb 2020) Environmental, social & governance (ESG) concerns have driven money into specialised funds that often exclude mining stocks among other 'dirty' assets

By Helen Reid and Tanisha Heiberg

- As global investors shift away from heavy industry in favour of cleaner sectors, mining companies are losing billions in financing, raising the cost of capital and jeopardising projects.

Making the mining industry more sustainable by running mines on renewable energy, for example, will be a key focus at the annual Investing in African Mining Indaba conference in Cape Town this week, as companies hunt for new sources of capital including private equity, debt, offtake finance and royalty finance.

Environmental, social & governance (ESG) concerns have driven money into specialised ESG funds which often exclude mining stocks among other 'dirty' assets.

"You talk to anyone at the moment, they say there's no money," said Boris Kamstra, executive director of Alphamin Resources, which manages the Bisie tin project in Democratic Republic of Congo.

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Reuters, 3 Feb 2020: Miners face funding squeeze as green investing surges