World’s Largest Mining Firm: ‘In A Carbon Constrained World, Coal Is Going To Decline. And Frankly It Should.’

http://thinkprogress.org/climate/2012/12/04/1279761/worlds-largest-mining-firm-in-a-carbon-constrained-world-coal-is-going-to-decline-and-frankly-it-should/


By Stephen Lacey on Dec 4, 2012

One of the world’s biggest mining firms says that extreme weather caused by climate change is already impacting some of its assets, thus forcing the company to re-evaluate its investments in the coal sector.

Speaking to investors and analysts on Monday, the Chief Executive of BHP Billiton’s coal division explained how the company is reinforcing infrastructure around its coal export terminal in Queensland, Australia because of increases in extreme weather that threaten the facility.

BHP Billiton is one of the largest producers of aluminum, copper, thermal coal, metallurgical coal, nickel, silver and uranium. The Australian company also owns and operates the Hay Point Services Coal Terminal, a coal facility that makes up a large portion of the biggest coal port in the world.

And now that facility is under threat from intensifying extreme weather, says BHP executive Marcus Randolph. His comments were reported in the Australian Financial Review after the company’s presentation on its sustainability strategy:

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In his presentation, Randolph made another stunning comment about the need to address carbon pollution by clearly stating that there is an “absolute ceiling” on emissions that can be pumped into the atmosphere:

BHP’s internal target over the next four years is to maintain its greenhouse gas emissions below 2006 levels, adjusted for material acquisitions and divestments. Mr Randolph said the target would stay even if a future government repealed the carbon tax.

“If you look at the targets . . . there is not a qualifier saying it is okay to emit more greenhouse gases if the carbon tax is eliminated,” he said. “An absolute ceiling is an absolute ceiling. Even if there isn’t a carbon tax, it still needs to be an issue we devote a lot of attention to.”

Just one month before, Randolph — the chief executive of the company’s coal division — told the Australian Financial Review that he believes the market for coal is going to decline because of environmental constraints, and that “frankly it should”: