Sev.en Global Investments wants to add thermal and coking coal mines to its Australian portfolio, with CEO Alan Svoboda saying the energy transition will take longer than some expect.
Little-known Czech outfit Sev.en Global Investments is in talks to buy coal mines in Australia to further broaden its portfolio in “traditional” mining and energy afterand a potash project in Western Australia in a spending spree last week.
Sev.en Global Investments CEO Alan Svoboda says the energy transition will take longer than many expect. “We will continue investing in these traditional assets as long as they are needed, and be their responsible owner and operator, and potentially phase them out as the transition will progress and replace them with these new technologies like batteries or solar power, so new projects get to benefit from the location of the previous assets.”
“We are looking at opportunities where maybe some of the institutional investors are more constrained than us, and the businesses require capital support, require some long-term commitment. I think that’s where we can be really best positioned to invest and help the business.”The 1320-megawatt Vales Point generator is due to close in 2029 but still supplies about 11 per cent of NSW’s electricity and is underpinned by retail contracts with Shell Energy among others.
“We want to maintain the asset as fully operational,” he said. “And depending on the circumstances, the supply-demand situation evolving over time, we will take appropriate steps. And obviously, we will respect all the rules and regulations that will be imposed on such assets going forward.”The deal comes as corporates are coming under increasing pressure to walk away from fossil fuels, while banks are also running shy of lending to the sector.
Mr Svoboda said though Sev.en had not previously owned potash assets, the commodity was global, like thermal and metallurgical coal, and a natural resource that required the same sort of mining expertise, logistics and distribution.
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