News Wrap

IN THIS morning’s News Wrap: Coal, gas producers say they still have a future in zero-carbon world; Mackenzie defends coal; and former Fortescue chairman sounds warning on iron ore.

Lou Caruana

Coal, gas producers say they still have a future in zero-carbon world

Coal and gas producers insist they still have a future under an agreement by the world's biggest economies to decarbonise the global economy by 2100 but say increased investment in carbon capture technology is vital to meet that goal, according to the Sydney Morning Herald.

A meeting of the Group of 7 leaders in Europe agreed “deep cuts” in greenhouse emissions were needed to keep the increase in the global average temperature below 2C.

Glencore, Australia's largest coal exporter, responded by saying coal would be the chosen fuel for baseload energy for decades to come particularly in the developing world.

Mackenzie defends coal

BHP Billiton CEO Andrew Mackenzie described the state of the gas versus coal debate as “unfair” and “ridiculous”, according to the Australian Financial Review.

“The kind of logical part of me says, ‘look, this is a little unfair’,” Mackenzie said of the European position on coal. “There's an element of truth to what people are doing but it's grossly exaggerated and it lacks perspective.”

Mackenzie said emerging Asia would use coal to fire its ambitions and that means “we have to find a way of doing that with fewer side effects”

“I think a lot of people think about coal because, of course, coal burnt uncleanly, creates dirty air,” he said.

Former Fortescue chairman sounds warning on iron ore

Former Fortescue Metals Group chairman Gordon Toll says the heads of the world's largest iron ore miners have exhibited “appalling ignorance of major economic market structures” and have created a global “debacle” that could last for decades, according to the Sydney Morning Herald.

Toll, who now heads locally listed magnetite hopeful Royal Resources, served as chairman of Fortescue from May 2005 to March 2007 while the company was in its development phase.

topics

loader