Then just last week, Whitehaven splurged US$3.2 billion on two second rate metallurgical coal mines ditched by BHP-Mitsubishi, completely disregarding shareholders’ objections, a decision which has massively come back to bite them at this AGM. In April this year, Whitehaven used its war profits to fast track work on the devastating new ‘Vickery’ thermal coal mine in the Gunnedah Basin, NSW, rapidly clearing the site and expecting to deliver first coal in mid 2024. This strategy not only risks shareholder value, but also our chances of a stable climate future. Rather than use this cash to fix its debt position, then pass the rest onto investors (as many shareholders desired and have been vocally demanding for months), Whitehaven has decided to gamble it all on buying up and building new coal mines. These windfall profits dragged Whitehaven out of years of debt – Whitehaven was almost $1 billion in the red before the war. Just a month ago, Whitehaven had almost $2.7 billion in cash after a surge in coal prices following Russia’s invasion of Ukraine. This year Whitehaven has demonstrated more clearly than ever that it is betting everything on the failure of the world to limit warming to 1.5☌, breaking ground on a new thermal coal mine and adding two operating coal mines and more mining tenements to its portfolio of existing and planned projects. Despite being somewhat overshadowed by the broader shareholder backlash, a fifth of a company’s shareholders telling it to wind down production and return capital needs to be taken seriously by management. This is the fourth year now that Market Forces has coordinated a shareholder resolution calling on Whitehaven Coal to manage down coal production. The company and its shareholders were met with a demonstration outside and probing questions inside the AGM, calling out Whitehaven’s greenwashing and contribution to the climate crisis by failing to align its business with global climate goals. This vote of no confidence leaves Whitehaven at risk of having its board spilled at next year’s AGM.Īlmost a fifth of Whitehaven’s shareholders also voted for a Market Forces-coordinated resolution demanding the company stop expanding and start managing down coal production in line with a net zero emissions by 2050 pathway.Ī major protest vote was also recorded against the reelection of long standing director Raymond Zage, who only received 75% support when these votes typically attract more than 95%. Whitehaven Coal faced a monumental revolt from major investors and community members at its annual general meeting, held in Sydney yesterday.ĭespite record profits this financial year and a multi-billion dollar growth acquisition, over 40% of the company’s shareholders rejected the company’s remuneration plan, which incentivises a reckless ‘growth at all costs’ approach.
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