Goldman Sachs has burned its coal business.
The bank sold its Colombian mining business to Murray Energy Corp. for less than $10 million, reports The Wall Street Journal. Goldman spent more than $600 million on the business, called Colombia Natural Resources. The bank struggled to make the venture profitable after being slammed with environmental and labor issues since opening the unit in 2010.
The exit from coal is the end of Goldman’s career as a raw materials producer. U.S. regulators aren’t disappointed. They’ve been encouraging banks to limit their raw commodity exposures because of the financial risks.
Goldman’s loss means big gains for the Ohio-based Murray. Murray founder Robert Murray said in a statement that the coal industry in the U.S. is “under attack,” leaving the company to look international for expansion.
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