In Commodity News 10/04/2015
French banks BNP Paribas and Credit Agricole said they did not intend to provide financing for contested coal mining projects in Australia’s Galilee Basin.
The two lenders join a growing list of international banks such as France’s Societe Generale and Deutsche Bank of Germany that have also ruled out involvement.
Any decision not to fund Galilee Basin coal projects in the Australian state of Queensland could affect the $7 billion Carmichael project owned by India’s Adani Enterprises and the $10 billion Alpha project owned by GVK Hancock, a joint venture of Indian conglomerate GVK with Australian billionaire Gina Rinehart’s Hancock Prospecting.
But both companies played down the latest snub, with an Adani spokesman saying the company had not formally requested financing from the French banks.
“The company continues to progress the financing arrangements for its projects in Australia,” the spokesman said.
GVK Hancock said it was working to finalise approvals and address legal challenges to its Alpha project before lining up coal sales agreements prior to pursuing financing for its Alpha project.
Environmental groups, which alerted media about the French banks ruling out involvement, have led a campaign against the projects. They say that Adani’s plans to expand a coal port on the Great Barrier Reef off the Queensland coast could threaten the UNESCO World Heritage site.
