Major French banks refuse to fund Adani’s $12.5bn Galilee Basin project

9 April 2015 (Last Updated April 9th, 2015 18:30)

Three of France's largest banks have announced they will not fund Adani's controversial A$16.5bn ($12.5bn) Galilee Basin coal mine development in Queensland.

Three of France's largest banks have announced they will not fund Adani's controversial A$16.5bn ($12.5bn) Galilee Basin coal mine development in Queensland.

BNP Paribas, Société Générale and Credit Agricole have issued statements to this affect, bringing the number of international banks to eleven that have refused to provide funding for coal mines in the region.

Conservation group Coast and Country objects to the company's proposal and claims it would contribute to climate change, leading to carbon emissions that would damage the Great Barrier Reef, The Australian reported.

Adani is planning to start production at the coal mine project by 2017.

"That so many of the world's biggest lenders to the coal industry can come out and public declare themselves as not involved speaks volumes."

The banks' announcement is a blow to the Indian company, which hopes to secure billions in debt finance from a pool of potential lenders for its Carmichael mega-mine.

The banks said they will not finance the project or the associated infrastructure such as new coal export terminals at Abbot Point.

Market Forces lead campaigner Julien Vincent said: "When it comes to securing finance for their massive coal mine and export terminal, Adani are simply running out of options.

"That so many of the world's biggest lenders to the coal industry can come out and public declare themselves as not involved speaks volumes about how unacceptable this project is from an environmental, reputational and economic standpoint."

According to the environmental group, Adani's coal mine and Abbot Point export terminal will need billions of dollars in debt finance, requiring a syndicate of commercial lenders.

Another Indian company, GVK, has partnered with Gina Rinehart's Hancock Coal to develop a coal project in the region.