The Asia Miner

JAN-MAR 2019

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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the asia miner • volume 16 • issue 1 13 REGIONAL FOCUS: Central Asia & Mongolia insঞtuঞons—both the development finance insঞtuঞons and state-controlled banks—have commied or offered funding for over one-quarter (102 gigawas GW) of the 399GW of coal plants currently under development outside China, including investment in export coal mines, coal-fired power plants, and the associated rail and port infrastructure. Bangladesh has the most proposed coal-fired capacity and funding from China, totalling over US$7 billion for 14GW of capacity, followed by Vietnam, South Africa, Pakistan and Indonesia. "These countries and more are insঞlling both a long-term dependence on volaঞle fossil fuel imports, and a dependence on China through coal plant joint ownership and/or strategic arrangements plus excessive foreign financial leverage, precisely at the ঞme when prices for solar, wind, and energy efficiency costs are falling below imported coal power," co- author Chrisঞne Shearer said. The report finds that most coal funding outside China is being provided by public Chinese banks that back Chinese state-owned enterprises to build the plants with a largely Chinese workforce. "Those countries accepঞng Chinese coal finance are geমng a bad deal from Chinese public insঞtuঞonal lenders as the total costs are prohibiঞve when compared to investment in deflaঞonary renewable energy alternaঞves," Shearer said. "With the majority of the planned Chinese coal projects yet to reach financial close in a number of countries, there is the possibility that the deals could fall through or be cancelled. Countries where Chinese finance is yet to be commied should re-focus their energy markets on investment in the grid improvements needed to support renewables." "As the cost of renewable energy undercuts new baseload coal-fired plants, IEEFA considers more private investment in cheaper zero-emissions energy to be a smarter path forward, rather than blindly agreeing to investment in outdated and expensive coal-fired plants backed by governments intent on filling their own coffers while everyone else bears the financial burden of global warming." "It is ঞme for China to formally limit its investment in coal plants outside of China and instead promote the acঞve uptake of cheaper renewable energy and grid technologies. This is what they are doing at home. Don't other countries deserve the same opportunity?" Coal-fired Capacity Under Development with Chinese Finance (MW)

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