BNY Mellon Cuts Ties With Billionaire Adani’s Coal Mine Flagship
(Bloomberg) -- Bank of New York Mellon Corp. will sever ties with billionaire Gautam Adani’s contentious Carmichael thermal coal mine in Australia, the latest global financial institution to distance itself from the project.
“BNY Mellon has decided to resign from all legacy transactions with Adani in Australia and will not pursue additional transactions,” the U.S. lender said in a statement. “BNY Mellon has determined this business is not aligned with our ESG principles.”
Adani Group didn’t immediately respond to an email seeking comment.
Adani, which rebranded its Australian mining business as Bravus Mining & Resources, is targeting the first shipment from Carmichael by the end of this year, having opted to self-fund the project after failing to secure external financing. The project has become a lightning rod for climate campaigners because it will potentially open up the previously untouched Galilee Basin to coal mining and expand Australia’s role as a major source of the highly-polluting fossil fuel.
Campaigners have also questioned Adani’s plans to invest in new mines and coal-fired power capacity after the conglomerate vowed to make its ports-to-power business carbon negative, and with India accelerating adoption of renewables under a plan to hit net zero by 2070.
Major lenders from Goldman Sachs Group Inc. to Australia’s four major banks previously ruled out financing for Carmichael, saying they didn’t want to lend to polluting fossil fuel projects. Global insurance companies have also distanced themselves from offering cover for the development.
BNY Mellon currently provides third-party administrative services under a small number of legacy contracts with the Adani Group in Australia, which includes acting as security trustee, according to its statement. The bank will honor contractual obligations as these agreements are unwound, it said.
©2021 Bloomberg L.P.