Coal stocks lose ground after COP26 deal

The COP26 pact on ‘phasing down’ the use of coal has seen mining stocks fall. An international agreement to reduce coal use has seen mining share prices fall, but tight supply of the commodity provided a floor for a sector that has chalked up huge gains this year.

UN climate talks in Glasgow ended on Saturday with a deal targeting fossil fuel use. Wording was softened to call for a "phase down" rather than "phase out" of coal after lobbying from India among others.

"The reality is that coal is going to be used during the next decade or so. It’s still going to be a cash generator," said Mathan Somasundaram, chief executive officer at Sydney-based research firm Deep Data Analytics.

Big miners China Shenhua Energy and Yanzhou Coal fell 1 per cent and 3 per cent respectively in Hong Kong, where the broader stock market was mostly steady. An index of […]

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