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Following the lead of all top American and European banks, which have refused to fund Adani Group’s controversial coal mining project in Australia, the National Australia Bank (NAB) has also decided to steer clear of lending to the group.
Adrian Burragubba, the spokesperson for the W&J Traditional Owners Family Council, welcomed the move and said the Council was deeply heartened that NAB has ruled out any involvement, now or in the future, in financing this disastrous project.
“Today, NAB has acted with moral authority and in accordance with the principles of corporate social responsibility to which it is signatory. Its decision brings this disastrous project one step closer to its demise,” Burragubba said.
A spokesperson for group declined comment. The Adani group has invested close to $1 billion in developing the mine, but over the last few months has decided to withdraw all contractors who were preparing the site for mining. The company had hoped to invest as much as $15 billion in the project.
However, widespread and loud protests from environmental groups and a sharp fall in coal prices since 2011 have helped scuttle the group’s plans. “The bank had clearly done its due diligence. It understood that we have rejected a land use agreement with Adani for the mine, and that no means no,” Burragubba said, adding that a meeting with the bank “reinforced for our people that our moral claim to exercise our rights in relation to our traditional lands is recognised by responsible businesses”. NAB’s decision follows commitments from over 10 international banks, including Adani’s former chief financier for Carmichael, Standard Chartered, and the Commonwealth Bank of Australia, to withdraw from the project.
The W&J Council is calling on the remaining two of Australia’s big four banks — Westpac and ANZ — which have not ruled out funding, to confirm whether or not they will finance the Carmichael coal mine.
In a further blow for Carmichael’s prospects, the Federal Court of Australia last month set aside approval of the mine by Federal Environment Minister Greg Hunt, who will now need to review his decision.
“It is bizarre and troubling that the Queensland and Federal governments persist in their support for the Adani Carmichael project,” Burragubba said.
“They should heed the message of the NAB, the Commonwealth Bank, and a roll call of international banks and investors and recognise that Adani’s mine is at a dead end in history.”
