Adani warning over bankers’ anti-coal agenda

Banks and insurance companies are destroying Australian jobs and communities to satisfy demands from green activists, Adani Australia head Lucas Dow told an inquiry on Friday (June 25). The company chief executive officer and country head was giving evidence before a Joint Standing Committee hearing regarding the prudential regulation of investment in Australia’s export industries. Mr Dow said Australian banks and insurance companies were withdrawing support from the Australian coal industry by refusing to provide finance, increasing insurance premiums dramatically, or even refusing to insure at all while continuing to profit from the strong economy that the industry creates. He warned that the banks and insurance companies’ actions threatened viability of the Australian export coal industry and the jobs, small businesses and communities it supports. “Hardworking Australians are the ones who will suffer from coal mining jobs disappearing if the industry becomes non-competitive because of rising insurance and finance costs as banks and insurers withdraw support for the industry," he said. “This is a matter of national interest, Australia must require its banks and insurance companies to support the economy and communities that they build their profits from.” Mr Dow was speaking at the first round of the parliamentary committee's public hearings, in the same week that the company's Bravus Mining and Resources hit coal as construction efforts continue at its controversial Carmichael coal project. Related: Bravus in the black at Carmichael Witnesses included the Minerals Council of Australia, the Australian Petroleum Production and Exploration Association, New Hope Group, Resource Industry Network and the Queensland Resources Council. Committee chair George Christensen said that the committee was interested in hearing from export businesses in the resources sector about any challenges they have faced in accessing insurance and financial services. "Australia’s export industries, including the resources sector, are critical in supporting our national economic recovery from the COVID-19 pandemic. As such, it is timely that this committee examine the challenges and opportunities for these industries in accessing financial services and insurance," Mr Christensen said. In its written submission to the parliamentary inquiry, Adani said there was a substantial misalignment between political recognition of the coal industry's contribution to Australia's post-COVID economic recovery and the conduct of Australia’s major banks and insurance companies. They were actively pursuing a divestment agenda that would lead to a complete withdrawal of banking relationships and insurance coverage with the sector from 2030, the company said. Adani argued that removing Australian coal from the global seaborne market would only see other jurisdictions with poorer quality coals and less stringent environmental regulations fill the gap.

Adani warning over bankers’ anti-coal agenda

Industry Queensland

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