The Queensland Resources Council (QRC) has leapt to the defence of Indian miner Adani, saying green groups are orchestrating publicity stunts against the company’s mega-mine proposal in the state’s Galilee Basin.
Overnight, groups such as Market Forces and Greenpeace heralded statements from the three largest banks in France — BNP Paribas, Credit Agricole and Societe Generale — declaring they would not finance projects in the Galilee Basin.
Greenpeace spokeswoman Marina Lou said it was clear they were concerned about the environmental issues surrounding Adani’s $16 billion Carmichael project, which includes a coal mine, rail line and port expansion.
It would be the biggest thermal coal project in Australia’s history.
“It will see 60 million tonnes of coal shipped through the Great Barrier Reef,” Ms Lou said.
“The cumulative effect of this will harm the health of the reef in the long run.”
It takes to 11 the number of banks, including Barclays, Morgan Stanley and Goldman Sachs, that have declared they would not finance projects.
Among the most vocal has been Deutsche Bank, whose co-chief executive Juergen Fitschen told the Financial Times last year the decision was motivated by environmental concerns.
“There is no consensus between UNESCO and the Australian Government regarding the expansion of Abbot Point in the vicinity of the Great Barrier Reef,” he said.
“Our policy requires such a consensus at the least. We therefore would not consider applications for the financing of an expansion any further.”
QRC chief executive Michael Roche has blasted green groups for lobbying international banks.
“It’s probably one of the more naive publicity stunts because it’s trying to get people to believe that a project that has been underway for years is only now trying to deal with the financing of the project,” he said.
“These particular French banks are not part of the plans, so it’s a bit of a nonsense to say these banks aren’t going to finance the project when they haven’t been approached to finance the project.”
‘Significant reputational risks’ to Adani
Tim Buckley from the Institute of Energy Economics and Financial Analysis (IEEFA) said it was a blow to Adani.
“It’s very unusual that so many banks would rule that out,” he said.
“I think there are significant reputational risks and that I think has played materially into their decision making.”
But Delhi-based analyst Hindol Sengupta, from Fortune India magazine, believes it is not finance that will make or break the project, but political momentum.
“Finance is less of a problem for Adani because if they are able to showcase, even initially, that they’re able to start the project and keep most of the stakeholders to a degree happy, then finance will come,” he said.
“What is more troubling is that is there enough political capital both in India and Australia … to push it through, and that is the question mark.”
Queensland’s former Newman government was very supportive of the Adani project, promising hundreds of millions of dollars of taxpayer assistance to the rail line.
The new Labor government led by Premier Annastacia Palaszczuk scrapped that commitment but was still keen on opening up the Galilee Basin.
“I’ve said very clearly that my government supports the creation of jobs from the Galilee Basin, but it has always been up to the proponents to get the finance that they need,” Ms Palaszczuk said.
No formal requests made to those banks, Adani says
Adani issued a statement in response to the ABC’s enquiries.
“Adani has not formally requested any financing from the institutions you have referred to,” a spokesman said.
“An institution ruling out something it was not requested to do has no bearing on this company.
“Adani’s projects in Queensland comply with the strictest environmental conditions in a world’s best practice environmental approvals framework.
“The company continues to progress the financing arrangements for its projects in Australia.”
None of Australia’s big four banks wished to declare their views on Adani’s project.