Big four banks not to fund Adani coalmine

ADANI IS SEEKING A $1BN CONCESSIONAL LOAN FROM COMMONWEALTH FOR ITS RAIL PROJECT LINKING THE MINE TO

ITS ABBOT POINT

COAL TERMINAL

All of Australia’s big four banks appear to have ruled out funding Adani’s Queensland coal project, after Westpac said it would not back opening up new coalmining regions.

Westpac, the country’s second-largest bank, released a new climate policy on Friday, saying it would limit lending for new thermal coal projects to “only existing coal producing basins”.The coal mined must also have energy content “in at least the top 15% globally”, meaning at least 6,300 kilocalories per kg, according to the Westpac policy.

Adani’s Carmichael mine would be the first in the Galilee basin and the coal would have only 4,950 kilocalories per kg, the miner told the Queensland land court in 2014.Adani coalmine is at heightened risk of becoming a stranded asset, the report said.

Westpac has come under pressure from environmental groups and activist campaigns, including one that targeted its cash machines interrupted the bank’s 200th anniversary celebrations.

Adani’s final investment decision on Carmichael had been slated for June end.

An Adani Australia spokesman said the firm had not approached Westpac for funding for the mine, rail or port expansion.

However, Blair Palese, the chief executive of climate advocacy group350.org said the federal and Queensland governments, both supporters of the proposed mine, were “becoming increasingly isolated as businesses and international investors refuse to touch coal and the Adani project”.

“After months of community pressure, Westpac’s announcement is a strong indication that people everywhere are ready to stop this climate disaster in its tracks and that Adani and our government ignore them at their peril,” he said.

On Thursday Andrew Harding, the CEO of Adani’s rival Aurizon,told the Melbourne Mining Club that Adani wrote off that suggestion as “fanciful and monopolistic”.Turnbull said the government could subsidise gas pipelines and Adani rail.

“The ‘plan’ is a smokescreen aimed at defending Aurizon’s expensive monopoly of coal rail lines in Queensland,” Adani said.

Adani previously received a $543-million loan facility in two deals with Westpac, alongside others from Commonwealth Bank and National Australia Bank, to acquire a 99-year lease on the Abbot Point terminal, according to the climate advocacy group Market Forces.