Adani Dismisses Three French Banks' Decision Not To Fund Coal Mine Project In Australia

India’s Adani Group had dismissed the refusal of three top banks in France to fund the massive coal projects the Galilee Basin near Australia’s Great Barrier Reef. Adani said it had “no bearing” on the company.

Several banks had previously snubbed the coal project including Deutsche Bank of Germany, Goldman Sachs, Citigroup and JPMorgan Chase in the United States due to environmental concerns. They were joined by BNP Paribas, Credit Agricole and Societe Generale of France, reports AFP.

In 2014, Australia had approved the firm’s plan to develop a coal mine for $16.5 billion. The huge coal industry project is expected to play a major role in opening up Queensland’s Galilee Basin. The Australian government has also given the go signal for Adani to push through with a major coal port expansion at Abbott Point on the coast of the Great Barrier Reef in strict compliance with environmental regulations.

BNP Paribas said its decision was part of its policy involving responsible financing that was set up several years ago. However, a spokesman for Adani in Queensland had dismissed the decision of the French banks and told AFP that the company “has not formally requested” any kind of funding from the banks.

“An institution ruling out something it was not requested to do has no bearing on this company,” said the spokesman in a statement. He added that Adani’s projects in Queensland have complied with strict environmental conditions.

ABC reports that the four big banks in Australia have yet to announce their decision on the matter. The country’s banks are under renewed pressure to not support the project.

Julien Vincent from the environmental group Market Forces believes the refusal of the French banks should send a message to other financial institutions. He said anyone Adani would approach to request for funds would have to “look around at their peers.”

The recently elected Queensland Labour government said it supports the Adani project but has cancelled the deals made by its predecessor involving funds for dredging and rail infrastructure. Environmental groups are opposed to the coal project due to the high volume of expected greenhouse gas emissions. They are also concerned about the impact of the project to the Great Barrier Reef.

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