Barclays to end support for some mining companies

April 7, 2015

Barclays has joined the list of financiers who will no longer support mountain top mining. In 2013, Barclays was loaned an estimated $550 million to coal mining companies that engaged in mountain top removal mining. In March, it said it would no longer lend to companies unless their commit to moving away from the mining practice “within a reasonable timeframe,” The Guardian reported.

In March, Pittsburgh, PA-based PNC Bank has said it would no longer finance coal companies that rely on mountaintop removal for more than 25 percent of their production.

The decision means U.S. coal producers will no longer be able to get credit from the bank or credit from JP Morgan, Wells Fargo, BNP Paribas, Goldman Sachs, RBS and UBS which have all pledged to move away from financing such projects, ME, March 4.

Mining using MTR has been economically marginalized by falling US shale gas prices and increasingly stringent legislation on the coal industry. Barclays said it expected the practice to wind down in the coming years.

“Due to a confluence of market forces and regulatory scrutiny in recent years, we believe that MTR is a mining method that will be phased out in the near to intermediate term,” said the policy.


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