Home > Big banks snub local farmers concerned about Whitehaven Coal

Big banks snub local farmers concerned about Whitehaven Coal

9 April 2021

12 April 2021

Whitehaven Coal is one of the biggest coal mining corporations on the Australian share market and some of the world’s biggest banks, including Westpac, Credit Suisse and Deutsche Bank, played a key role in lending $1 billion to the company in 2020.

ANZ and Commonwealth Bank have also previously loaned to Whitehaven and remain key arrangers of finance for other climate-destroying coal and gas companies.

But now, these banks are refusing to meet the local farmers severely impacted by Whitehaven’s dirty coal operations.

Whitehaven has a track-record of fuelling climate destruction. It plans to spend almost $2 billion building new coal mines, which would see the company producing around twice as much coal as it does today well into the 2040s. Whitehaven has repeatedly justified its coal expansion strategy by reference to coal demand projections that are consistent with a catastrophic 4°C of warming.

Not only are the banks supporting Whitehaven’s destruction of our climate, they’re also funding a corporation that’s notorious for breaking the law and ruining local communities.

In the Namoi Valley of New South Wales, Whitehaven has committed a litany of environmental breaches. In December last year the company pleaded guilty to 19 charges for illegally drilling water bore holes, failing to rehabilitate drill sites and bulldozing land for unauthorised roads. Meanwhile, near Whitehaven’s Maules Creek coal mine groundwater bores have dried up and local farmers have been priced out of water licences during extreme droughts.

Farmers affected by Whitehaven’s coal mines have struggled to have their concerns heard by Whitehaven for years.

In February, at the request of local farmers, Market Forces teamed up with Lock the Gate to facilitate an online presentation by community members for Whitehaven Coal’s financial backers. It was an opportunity for the banks to hear directly from communities struggling with the consequences of living next to Whitehaven’s dirty coal mines in the Namoi Valley.

But guess what? Of the 14 banks we invited, only one turned up.

The other 13 banks snubbed the local farmers who spent weeks preparing to speak with them about the impact of Whitehaven’s dirty coal mines on their communities. By supporting Whitehaven, these banks are supporting a climate-wrecking corporation that’s notorious for breaking the law and ruining local communities.

It’s time to tell these banks to dial down on coal and dial up local communities!

Take action!

Tell Whitehaven’s financial backers to start listening to local communities and to stop backing companies expanding the dirty coal industry!

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Your message to the banks
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I am very concerned that your bank has been a major lender to Whitehaven Coal, whose business plans are consistent with the failure of the Paris Agreement, and that you recently turned down an offer to meet with communities struggling with the impacts of Whitehaven’s destructive coal mining operations. I want you to explain this decision and to confirm you will no longer support Whitehaven Coal or any other company pursuing plans consistent with the failure of the Paris Agreement. Lending to Whitehaven is a vote of support for a business model predicated on the failure of the Paris Agreement. Any expansion of the fossil fuel industry is completely incompatible with the climate goals of the Paris Agreement, which aims to hold global warming to below 1.5˚C above pre-industrial levels. Yet Whitehaven Coal is pursuing massive new coal mining projects when the world desperately needs to transition to clean, renewable energy sources. Whitehaven has repeatedly justified its expansion plans by reference to coal demand projections that are consistent with a catastrophic 4°C of warming. Even 2ºC of warming would expose 37% of the world’s population to extreme heat, destroy 99% of the world’s coral reefs (including the Great Barrier Reef) and result in massive biodiversity loss. At 3ºC of warming, global GDP losses could be more than 25% by 2100. The 4ºC warming scenario that Whitehaven is using to justify its operations would be catastrophic. Not only is Whitehaven trashing our climate, it also has a long history of trashing the local environment and communities that it operates in. Whitehaven has repeatedly broken environmental conditions put in place to govern its operations, including by contaminating nearby streams and excessive air pollution. In December 2020, Whitehaven pleaded guilty to 19 charges brought against it by the New South Wales resources regulator for unauthorised vegetation clearing, unauthorised drilling of bores and failing to rehabilitate drill sites. Local farmers have also raised concerns for years that Whitehaven’s coal mines have been unlawfully taking water without a licence, including during severe drought. The state water regulator has since commenced prosecution against Whitehaven Coal over these allegations. Even where Whitehaven has lawfully obtained its water, it has done so at the expense of local farmers by outbidding them on the water trading market. In February 2021, you were invited to engage with the local communities who have been living with the day-to-day consequences of Whitehaven’s operations. However, you did not attend that meeting. As a lender to this coal company, it is disgraceful that you refused to meet with the communities most affected by your investment. I want you to explain to me how you justify ignoring these communities. I also want you to confirm to me personally, and announce publicly, that you will not provide any more finance to Whitehaven Coal, or other companies pursuing plans consistent with the failure of the Paris Agreement. Sincerely,
- I want updates about this campaign from Market Forces!

Your message will be sent to ANZ, Commonwealth Bank, China Everbright Bank, Deutsche Bank, Credit Suisse AG, Caterpillar Finance Corporation, Bank of Communications, Westpac, Industrial & Commercial Bank of China, Mizuho Bank, MUFG Bank, Bank of China, and Sumitomo Mitsui Banking Corporation (SMBC).

#SHAME

?@Westpac @ANZ_AU @CommBank @CreditSuisse @DeutscheBank & 8 other major banks have refused to meet farmers affected by Whitehaven Coal.

With a history of funding Whitehaven, these banks are backing coal over our climate and local communities ?https://t.co/WQfr34cT1C pic.twitter.com/Eep7UHndQ0
— Market Forces (@market_forces) April 12, 2021