US bank BNY Mellon cuts ties with Adani’s Carmichael coalmine
One of the world’s biggest banks has pulled out of providing financial services to Adani and its controversial Carmichael coalmine, saying the venture is incompatible with its environmental, social and governance rules.
The Bank of New York Mellon’s move comes after a campaign by local Indigenous people, who have been occupying the mine site and conducting cultural ceremonies.
In a statement, BNY Mellon said that it had never provided funding to the mine or a railway line and port that form part of the project.
The bank said that it had provided “third-party administrative services under a small number of legacy contracts with the Adani Group in Australia, which includes acting as security trustee”.
Security trustees act as representatives of groups of banks that form syndicates to provide loans to companies. It is understood BNY Mellon provided security trustee services to Adani, now known as Bravus, in relation to the coal port.
“After review, BNY Mellon has decided to resign from all legacy transactions with Adani in Australia and will not pursue additional transactions with Adani in Australia,” the bank said.
“BNY Mellon has determined this business is not aligned with our ESG [environmental, social and governance] principles.
“Upon resigning, we are required to honour our contractual obligations during the unwind[ing] of these transactions until our roles are terminated.”
It said client confidentiality rules prevented it commenting on specific customers but added: “For the avoidance of doubt, BNY Mellon is not currently entering into, and does not intend to enter into, any new contracts with Adani in Australia.”
The bank’s ESG commitments include “the efficient use of natural resources, mitigating climate-related risks, and leveraging innovative energy solutions”, “effectively managing” relationships with stakeholders including “the communities in which we operate” and “operating with strong ethical business practices”.
Pablo Brait, a campaigner with activist group Market Forces, said BNY Mellon was the 104th company to rule out working on the Carmichael project.
“No company which claims to care about the climate can justify any involvement with a massive new thermal coalmine, its associated rail line and port, and the company building it,” he said.
“The world’s banks, investors and insurers must cut ties with the Adani Group until Adani Group abandons the Carmichael project.”
A Bravus spokesperson said its financing arrangements were confidential and added: “Completion of the Carmichael mine and rail project is on track to allow us to export coal to market this calendar year.”
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A group of Wangan and Jagalingou traditional owners began occupying Adani’s mining lease to conduct a cultural ceremony in late August.
Adani has accused the group of being “anti-fossil fuel activists” who are “trespassing under the guise of traditional activity”.
However, as Guardian Australia has reported, police called by Adani refused to remove the group in early October, saying they were instead working on negotiating with the two sides towards “a peaceful and non-disruptive resolution into the future”.