Second bank exits Carmichael project

Adani Mining has ended its relationship with another financial advisor in less than a week, this time London-based bank Standard Chartered.

The UK bank revealed on Monday that both parties agreed to end the bank’s role in the Carmichael coal project in the Galilee Basin.

Last week Adani Mining and the Commonwealth Bank of Australia announced that the bank would no longer participate in an advisory role in the Carmichael project.

A spokesperson for Adani Mining said the decision was made at the same time as the CBA decision.

“It was actually us that terminated it and not the other way around,” he said.

“When you have approval timelines that are very clear, and you tell people that they need to be met, within reason, you want the approvals to be considered, you don’t want them to last forever.”

Adani’s spokesman said that it would be happy to resume its relationship with interested financial partners once the approvals became more certain for the Carmichael, North Galilee Basin Rail and Abbot Point expansion projects.

“However, that approvals certainty must come first,” he said.

“This reflects not only Adani's concern about the fact is has spent $1.2 billion to date in anticipation of approvals and decisions that have now become far less certain; but also the obvious need for interested financial partners to see those approvals before they will commit.

“That is why the company made the decision to concentrate on getting more clarity on approvals before committing further significant investment.”

Adani did not comment on whether it had any more financial advisors on board for the Carmichael project.

The Guardian reported that Standard Chartered told investors at its AGM in May that it would go no further with the project until it was satisfied with the environmental credentials.

The bank has also held its own meetings in London with representatives of Greenpeace and the Wangan and Jagalingou people.

A spokesman for Standard Chartered said the bank had promised to consult with stakeholders before engaging in further participation in the project.

“This process of engagement, which has been extensive, has enabled us to review and assess the competing demands of, and on, the energy sector,” he said.

“As a result of this ongoing review by Standard Chartered and the delays experienced by Adani in receipt of its project approvals, both parties have agreed to end the bank’s role in the Carmichael project.”

Image: Yui Mok/PA

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