CommBank loses interest in Adani project, dealing major blow to mega mine

Print Friendly, PDF & Email

The Commonwealth Bank have joined 11 other international banks in cutting ties with Adani’s CarMichael coal project.

share
Print Friendly, PDF & Email

The Commonwealth Bank have joined 11 other international banks in cutting ties with Adani’s CarMichael coal project in a major blow to the project following a reversal in the Federal Court this week. The Commonwealth Bank was acting as Adani’s financial advisor in what would be Australia’s biggest coal mine.

The Conversation
The Conversation

 

The bank’s announcement came not too long after the Federal Court of Australia overturned the approval of the controversial project, which has faced fierce criticism from the public.

Market Forces Executive Director Julien Vincent said of the decision:

“This is a devastating blow to Adani, and leaves their plans to build Australia’s biggest coal mine and a new export terminal in the Great Barrier Reef hanging by a thread.

“As an adviser, Commonwealth Bank was in line to be a leading lender to Adani’s Carmichael mega coal mine. Adani has not just lost hundreds of millions of dollars in debt finance that CBA could have brought, but the credibility that a major Australian institution’s support brought to the project. That’s a bigger, more embarrassing blow and could cost this project billions of dollars.”

Adani may now find it significantly tougher to source investment from other banks, with $16 billion required to build the mine and the attending infrastructure to transport the coal to a port in Abbot Point in Queensland.

“Over the past day we have learned that the Carmichael coal project is not just without a banking partner in Australia, but also technically illegal. That doesn’t exactly make for a good sales pitch for a project supposed to reach financial close this year.

“Without an Australian bank on board, this project is going to be almost impossible to get off the ground. The question now is whether the other big banks will see sense and also rule out involvement in Adani’s coal export plans.

“We call on ANZ, Westpac and NAB to match what Commonwealth Bank has done, recognise that the Galilee Basin mega coal mines and new ports in the Reef are an environmental and financial disaster, and rule themselves out of providing support to Adani’s coal export plans.”

Print Friendly, PDF & Email

4 Comments
  1. Rob G 4 years ago

    Commonsense Bank?

  2. Peter 4 years ago

    Let’s hope that the other three major Australia banks follow just like when there is a change announced by the RBA in interest rates.

    • nakedChimp 4 years ago

      They sure will, they are not that stupid 😉

  3. David Rossiter 4 years ago

    So who are the eleven banks? We should take their action as strong support for climate change issues.
    The Drum on ABC appeared to state last night 60 years of mine life at 60 million tonnes of coal per year for Adani’s mine – that is 3.6 billion tonnes of coal or around 9 billion tonnes of carbon dioxide fed into the atmosphere. Which is roughly the total emissions allocated to Australia to keep to our commitment to limit global warming to under 2 degrees C.
    A stunning result in other words to keep to our international commitment we should cease all emissions from Australia as from now. Just as well Adani’s project may not proceed, or perhaps must not proceed!

Comments are closed.

Get up to 3 quotes from pre-vetted solar (and battery) installers.