Adani insurer ends support for coal mine after global pressure
Adani’s Carmichael coal mine has lost the support of another insurance company, raising doubts about the viability of Adani’s beleaguered mine in Central Queensland. UK based Lloyd’s of London insurer Probitas 1492 is the sixth known insurer of Adani’s Carmichael coal mine to withdraw from the project.
Adani’s Carmichael coal mine has lost the support of another insurance company, raising doubts about the viability of Adani’s beleaguered mine. UK based Lloyd’s of London insurer Probitas 1492 is the sixth known insurer of Adani’s Carmichael coal mine to withdraw from the project.
Probitas 1492 has been the target of protests by #StopAdani, XR Money Rebellion and the UK based Coal Action Network over its support for Adani's coal mine. In December 2022 insider information obtained by Market Forces named Probitas 1492 as the insurer of the Carmichael rail line, coal haulage operation (Bowen Rail Company) and NQXT coal port (formerly Adani Abbot Point Terminal).
In an email from Probitas 1492 CEO Ash Bathia to XR Money Rebellion, Probitas confirmed it had been insuring Adani’s mine and rail line. Probitas said it ceased support for Adani’s coal mine at the end of last year and would not renew policies it currently holds for Adani’s rail line and associated activities when they expire later this year.
The email states: “I can confirm that Probitas 1492 ceased to provide insurance for the Adani Coal Mine at the end of last year and will also not provide any insurance support in the future for any ancillary or associated activities, including the trainline, once the existing policies expire in the next quarter.”
A copy of the email can be requested from [email protected]
Gurridyula Gaba Wunggu, Wangan and Jagalingou Cultural Custodian and headman of the Waddananggu tribe said: “Probitas 1492 has made the right decision - this shows the strength and determination of everyone who has played their part in forcing the hand of Probitas 1492. This is also a message to all other Adani financiers and insurers - we are coming for you too and we will not stop until you pull out from Adani.
“To all the financiers and insurers that still choose to facilitate agreements with Adani - there is no free prior and informed consent from us, the original bloodline-connected Tribal people from the land that Adani chooses to illegally occupy. This has been the homelands of our people for millennia. Any insurer or financier still backing Adani is complicit in the destruction of Wangan and Jagalingou homelands and the ethnic cleansing of our culture and people.
“We have now repatriated back to our homelands and conducted our Waddananggu ceremony here on Adani’s mining lease for over 678 days. Don’t underestimate our determination. We plan to be here until Adani is forced to abandon this project so we can watch them pack up and leave our homelands for good.”
Will van de Pol, Market Forces acting Chief Executive said: "Adani has lost yet another critical financial supporter of its disastrous Carmichael coal mine, a project so toxic that over 100 major companies have ruled out any involvement with it.
"The Carmichael coal mine is one of the most controversial projects in Australia’s history. It is being contested by Traditional Owners who have not given their consent, and poses unacceptable risks to water and agriculture, while fuelling worsening floods, heatwaves and bushfires.
"Adani's options for insurance are drying up. No financial institution should remain willing to back this destructive coal mine.”
Probitas 1492 is the 46th insurance company to rule out support for Adani’s Carmichael coal mine and the 6th insurance company who was insuring the project but has since withdrawn support. Earlier this year Adani’s empire was rocked by allegations of the biggest fraud in history. At one point over US$150B was wiped off Adani’s market value. The loss of another insurance company raises further doubts about the viability of Adani’s risky coal mine.
As insurance companies withdraw cover for coal mines, Adani and other Australian coal companies are looking to self insure through setting up a coal industry mutual fund. Former Adani CEO Lucas Dow has called on Australian political parties to commit $1.5 bn of taxpayer money to support a coal insurance mutual fund.
Since commencing coal production Adani’s coal mine has been plagued by numerous environmental breaches and accidents, adding additional risks for insurers. In March, the Queensland government issued an Environmental Protection Order to Adani, in light of new information that underground mining is likely to draw down on water from the nearby Doongmabulla Springs, a sacred site for First Nations Traditional Owners, which would breach the mine's approved impact. In June ABC reported on a series of dangerous incidents at coal mines in Queensland, including a vehicle that was crushed by a bulldozer at Adani’s mine.
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