Korean Bank says ‘No’ to Adani’s $2 billion coal mine project

The Korea Development Bank, the Export-Import Bank of Korea and the KDB Infrastructure Investment Asset Management Company have ruled out their role in funding of Adani's Australian coal project. This development comes months after the miner was reportedly in discussion to win funding from major lenders in Seoul.

Earlier, representatives of the Wangan and Jagalingou (W&J) people, who are traditional owners of the land on which the mine is proposed to be built, wrote an email to banks in South Korea to express their concern and reservation about the project.

Major Korean lenders, The Korea Development Bank, the Export-Import Bank of Korea and the KDB Infrastructure Investment Asset Management Company, have responded to the W&J representatives’ email and stated that they have ruled out any possibility of providing financial assistance to the Adani Group for the mine project. They have all confirmed that they will not be funding the $2 billion project of the Adani group.

According to a report in The Wire, the Korea Development Bank, stated in the email that they reviewed the project upon a Korean client’s request in 2014. “However, we are no longer reviewing it. We wish to express that we have no intent to provide finance for the project,” the Korean bank said in its email owner’s representatives.

Export-Import Bank of Korea said that it is not considering any funding to the Carmichael project “Since, as far as we know, there are not any Korean interests any more in the project”.

In the year 2016, Export-Import Bank of Korea had met with the department of foreign affairs and trade of the Australian government and spoke about the possibility of the bank providing finance for the mine.

KDB Infrastructure Investment Asset Management Company said, “We deeply conform the responsibility of financial investors and have well understood the importance and concerns for the development of the Carmichael mine on the W&J’s ancestral lands,” the company said.

According to a report in the ABC, representatives of the W&J owners are travelling to South Korea and will continue lobbying lenders, including Mirae Asset Daewoo, which refinanced Adani's Queensland coal port in July.

A similar lobbying roadshow by W&J representatives in the US and Europe in 2015 saw major lenders, including Britain's largest investment bank Standard Chartered, back away from Adani.

Adani is vying to clinch funding for a new scaled-down launch of a project first touted to cost $16.5 billion, now earmarked to get underway with an initial $2 billion.

The W&J Adani opponents said they would seek meetings and hold "media events" at the offices of other institutions including Mirae Asset Daewoo, Korea's National Pension Service and NH-Amundi.

A media report in September suggested Adani was seeking to partly fund the Carmichael project by selling a stake in its Abbot Point coal port to Korean interests.

W&J have made formal complaint to UN

The mine opponents are battling to retain their title rights and have formally complained to the United Nations.

"Whoever assists Adani financially at this crucial time will become complicit in a grave breach of our rights, and the destruction of our lands and waters and sacred places. They are also exposing themselves to financial risk because success in our Federal Court appeal due next year would deliver great uncertainty to investors," W&J elder Adrian Burragubba said.

Another W&J representative Murrawah Johnson, said 33 major institutions had now ruled out funding Adani. "The interest in Adani from Korean banks or potential equity financiers needs to be made clear after reports that Adani has held talks with Korean finance companies. We are seeking to close the door on this financing avenue," she said.