An Australian mining contractor does not get insurance on ESG accounts
A contractor at a controversial coal mine in Australia has said he has not secured insurance for the project due to environmental concerns, stressing how the country’s fuel funding has dried up.
The BMD Group, which works at the Carmichael mine in Adani Enterprises, said appeal In a parliamentary investigation, he will have to ask the government for insurance.
BMD’s claim was reported by more than a dozen submitted by companies warning that the company’s suspension of funding for the sector due to environmental, social and governance concerns endangered the destruction of the Australian coal export industry by $ 20 billion ($ 15.5 billion) a year.
A section of BMD a is under construction railway At Carmichael, it is a 10m-ton annual thermal coal project climate protests. BMD was denied at least 33 contractors in the project for liability insurance because it was linked to Adani, according to the former.
BMD said customers will have to absorb the risks if they cannot get insurance on behalf of their contractors, or the government should provide insurance from public funds.
“Failure to take any action can only result in a few contractors being willing or able to perform these critical infrastructure works,” the group said.
The BMD told the survey that it had been exposed to activism by climate change protesters and anti-coalition groups, including threats of violence against group owners and families.
An investigation into the financial sector’s treatment of export industries has come after Keith Pit, the minister for resources, accused banks and pension funds of “corporate activism”.
“That’s exactly why I asked for this survey and I look forward to the outcome,” Pitt said of BMD’s presentation. “How is it possible to deny insurance to a company that could be transporting cattle, grain, people or anything else because it carries coal because the moving product has no effect on the construction risk.”
Adani, owned by the Indian magnate Gautam adani, the survey said banks and insurers were settled completely withdraw from the coal By 2030, which would have a “dramatic and detrimental impact” on the industry.
Adani told the Financial Times that Carmichael had the necessary insurance for the entire project.
The New Hope Group coal company said the effects of financial companies withdrawing from the sector would be “serious”.
The Appea team, which represents the oil and gas industry, said banks and pension funds are increasingly telling companies that they can no longer invest in projects because of ESG concerns. But the “positive role that oil or gas can play in providing energy security in the global decarbonizing economy” is not often considered, he argued in a presentation.
The Australian Insurance Council told the poll that its members have acknowledged the importance of the country’s export industries and expressed moves by investors and regulators to respond to the risks posed by climate change.
“The general insurance industry will continue to support and enable the effective risk management of Australian exporters… In line with a contemporary understanding of regulatory guidance and legal obligations,” the council said.
BMD did not respond to a request for comment on the insurance situation.
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