China’s Coal-Fired Economy Dying of Thirst as Mines Lack Water

See on Scoop.itGreen & Sustainable News

Coal industries and power stations use as much as 17 percent of China’s water, and almost all of the collieries are in the vast energy basin in the north that is also one of the country’s driest regions.

Duane Tilden‘s insight:

>About half of China’s rivers have dried up since 1990 and those that remain are mostly contaminated. Without enough water, coal can’t be mined, new power stations can’t run and the economy can’t grow. At least 80 percent of the nation’s coal comes from regions where the United Nations says water supplies are either “stressed” or in “absolute scarcity.” […]

Geneva-based Pictet Asset Management’s $3.17 billion global water fund doubled its exposure to stocks offering water services in China to 10 percent since 2007.  […]

Beijing Enterprises has risen 55 percent this year to HK$3.10 and Deutsche Bank sees it reaching HK$3.20 within a year. China Everbright is up 81 percent to HK$7.10 and JPMorgan Chase & Co. estimates it will reach HK$7.60 by mid-October.

Severe Pollution  “The best opportunity is in industrial water re-use, and for the mining industry, it is of the utmost urgency,” said Junwei Hafner-Cai, a manager of RobecoSAM’s Sustainable Water fund. “Water that has been released from the coal mines and from petrochemical plants has resulted in severe pollution on top of the water scarcity.”

A shortage of coal because of the lack of water to mine and process the fuel may force China to increase imports, pushing up world prices, according to Debra Tan, director at research firm China Water Risk in Hong Kong. China, which mines 45 percent of the world’s coal, may adopt an aggressive “coal-mine grab” to secure supplies, said Tan.<

See on www.moneynews.com

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