February 12, 2020 / 2:23 AM / 6 days ago

S&P releases ESG industry report on metals and mining industry

    MELBOURNE, Feb 12 (Reuters) - S&P Global ratings on
Wednesday released its first scorecard for metals and mining
companies that rates them on their environmental, social and
governance (ESG) credentials, an area of increasing focus for
investors.
    * Coal mining is the most heavily exposed subsector, as
global demand for coal is expected to peak in coming years with
more adverse policies expected for coal-fired power, which emits
roughly twice as much greenhouse gas as all gasoline burned. 
    * The mining industry has "well-above-average" exposure to
environmental risks, resulting from land use, waste, pollution
and water usage. Techniques such as heap leaching or the use of
toxic fluids like cyanide and sulphuric acid can be devastating
if there are leaks. Low probability events like tailings dam
failures as seen in Brazil also have a severe impact. 
    * Metals production also has "well-above average
environmental exposure" for example high green house gas
emitting blast furnaces used by the steel industry. 
    * Main social tensions arise from safety and local labour
relations and from the impact on communities of pollution, water
or land usage conflicts and economic or landscape impacts.  
    
    Selected global miners and S&P's ESG ratings*
   * Ratings below BBB- are regarded as non-investment grade
 BHP Group                        A/Stable/A-1
 Rio Tinto PLC                    A/Stable/A-1
 Codelco                          A+/Negative/--
 Glencore PLC                     BBB+/Stable/A-2
 South 32                         BBB+/Stable/A-2
 Newcrest Mining                  BBB/Stable/--
 Anglo American                   BBB/Stable/A-2
 Barrick Gold Corp.               BBB/Stable/A-2
 Teck Resources Ltd               BBB-/Stable/--
 Aluminum Corp of China (Chalco)  BBB-/Stable/--
 Zijin Mining Group Co            BBB-/WatchNeg/--
 Alcoa Corp                       BB+/Stable/--
 Alliance Resource Partners       BB+/Stable/--
 Fortescue Metals Group           BB+/Stable/--
 Freeport-McMoRan                 BB/Stable/--
 PT Vale Indonesia                BB/Stable/--
 Yanzhou Coal Mining              BB/Stable/--
 Arch Coal                        BB-/Stable/--
 Peabody Energy                   B+/Stable/--
 China Hongqiao Group             B+/Positive/--
 PT Bumi Resources                CCC+/Stable/--
 
 (Reporting by Melanie Burton; Editing by Amy Caren Daniel)
  
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