Home > Five Korean creditors dump Adani’s Abbot Point as judge orders $106m payment to customers

Five Korean creditors dump Adani’s Abbot Point as judge orders $106m payment to customers

28 August 2020

All five of Adani’s Abbot Point coal port’s existing Korean creditors have now ruled out providing any further funds to the port linked to the disastrous Carmichael mine and rail project.

Market Forces and Bushfire Survivors for Climate Action first wrote to Samsung Securities, Hanwha Securities, Mirae Asset Daewoo, Korea Investment and Securities and the Industrial Bank of Korea on 5 June. These companies were involved in two loans to Abbot Point, made in 2018 and 2019.

We asked these companies to rule out any further funds for the coal port, due to its links to the Carmichael coal project and the damage to the climate, water supplies and local ecosystems that the mine and railway project would cause.

Starting with a commitment from Samsung on 17 July after a protest outside one of its stores in Sydney, all five of these companies have now confirmed they will not provide any further funds as Abbot Point tries and fails to refinance its substantial debt.

Bushfire Survivors for Climate Action call on Korean creditors to walk away from Abbot Point coal port.

Click here for more information on Abbot Point’s debt

Adding to Adani’s Abbot Point problems, on Thursday it lost a case in Queensland’s Supreme Court brought by four of its coal port customers, with a judge ordering Adani to pay $106m.

According to a report in the Courier Mail, the judge blasted Adani’s “dishonest behaviour” which she said was “deliberate, not just heedless or indifferent“.

Take action by filling out the form on this page to ask Adani Abbot Point’s remaining creditors to walk away once their current debt matures. Pressure from #StopAdani and other climate activists has been a key factor in convincing creditors to walk away from funding both Carmichael and Abbot Point.

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Email to existing creditors
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I am writing to ask that your company does not participate in any further financing of North Queensland Export Terminal or NQXT (formerly known as Adani Abbot Point Terminal). NQXT is an essential component of the controversial Carmichael thermal coal export project with all the coal extracted from the Carmichael mine intended to go through NQXT. This means that by financing the port, your company is supporting the Carmichael coal export project. Continuing to do this will generate significant reputational risks for your company. Not only do the majority of Australians oppose Adani’s coal mine, the project is being contested by Traditional Owners who have not given their consent to the mine, it has cleared endangered species habitat, will drain billions of litres of precious water resources and add millions of tonnes of carbon to the atmosphere. Helping NQXT means you risk being associated with a massive new thermal coal mine in a new coal basin, and being seen as partly responsible for one of the biggest potential sources of new carbon emissions on the planet. NQXT itself has been fined [1], several times [2], for polluting nearby wetlands. In addition, NQXT has had some difficulty refinancing its debt with a bond issue planned for early 2020 cancelled. Adani was forced to repay $270 million for two tranches of debt coming due in 2020 out of its own funds. This difficulty to refinance, as well as ESG risks associated with the port's link to Carmichael, are the primary reasons both S&P Global and Fitch have respectively downgraded the rating and outlook of NQXT bonds [3]. I urge you to rule out further financial support for the Adani Abbot Point Terminal/North Queensland Export Terminal and all entities associated with the disastrous Carmichael coal project. I hope to hear from you soon in response to my concerns. [1] https://www.australianmining.com.au/news/adanis-abbot-point-coal-gets-12k-fine-stormwater-release/ [2] https://www.brisbanetimes.com.au/national/queensland/adani-fined-after-stormwater-flows-into-north-queensland-wetlands-20190326-p517m2.html [3] S&P Global Ratings https://www.spglobal.com/ratings/en/research/articles/210329-research-update-north-queensland-export-terminal-rating-lowered-to-bb-on-refinancing-risks-outlook-negati-11897266 Fitch Ratings https://www.fitchratings.com/research/infrastructure-project-finance/fitch-revises-outlook-on-north-queensland-export-terminal-to-negative-affirms-at-bb-20-09-2021
Email to bond arrangers
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Back in 2020, you were named as one of the companies working to raise finance for the Adani owned North Queensland Export Terminal or NQXT (formerly known as Adani Abbot Point Terminal). This port will be used to ship all of the thermal coal mined from the controversial Adani Carmichael coal mine and thus is a critical part of the Carmichael project. Refusing to rule out any further provision of services to NQXT poses a significant reputational risk for your company. In the midst of an urgent climate crisis, the Carmichael coal mine would produce enough coal over its lifetime to emit 4.6 billion tonnes of CO2, equivalent to over eight years of Australia’s annual greenhouse gas emissions. At the local level it is being contested by Traditional Owners who have not given their consent to the mine and it threatens water supplies and agricultural production. It would also increase industrialisation in the already distressed Great Barrier Reef World Heritage Area. All this has made the Carmichael coal mine arguably the most environmentally and socially contentious project in Australia’s history. A survey in 2018 found 65% of respondents either opposed or strongly opposed Adani’s Carmichael mine. Based on the information above, I consider your willingness to provide financial services to NQXT as support for the climate-destroying Carmichael coal project. I urge you to publicly commit to permanently cut ties with NQXT and all Adani entities linked to Carmichael coal. I hope to hear from you soon in response to my concerns.
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