The contentious Carmichael Coal Mine is located near the iconic Great Barrier Reef in Australia. The country’s High Court on Tuesday rejected the government’s environmental clearance given to Adani Mining for the $16 billion project.
The fallout for Adani Mining continues with Australia’s largest lender, Commonwealth Bank, ceasing its role as financial advisor to the Indian conglomerate.
On Tuesday, the country’s apex court revoked the Australian government’s environmantal approval for the $16.5 billion project, considered as the world’s biggest.
Adani’s environmental authority has been set aside after the court found Environment Minister Greg Hunt had not properly considered advice about two threatened species the yakka skink and the ornamental snake in the Galilee basin, reports say.
Environmentalists hailed the CBA’s decision and said it cast more doubt on the project’s future.
“As part of Adani’s refocusing of the project on gaining the various outstanding approvals, the financial advisory mandate has ended,” said a spokesperson for the bank.
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The bank declined to elaborate on the circumstances of its withdrawal but sources said the environmental controversy surrounding Carmichael and the project’s financial risk in the face of tumbling coal prices had been concerns.
An Adani spokesman said it was “inaccurate” to suggest CBA had walked away, insisting Adani had terminated the mandate.
It had done so “on the basis of its own concerns over ongoing delays to a now five-year long approvals process here in Australia”, he said in a statement.
He added that Adani valued its partnership with CBA.
“In the event the Commonwealth approvals framework is not further undermined by activists seeking to exploit legal loopholes – thus enabling the project and the thousands of jobs and billions of dollars of investment it would bring to be delivered – Adani would happily work with the bank in future.”
CBA announced it had tightened its environmental and social governance policies at its annual shareholder meeting last November.
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(With agency inputs)