Adani mine: another insurer distances itself from Carmichael project

Extract from The Guardian

Carmichael coalmine

Possible rail line insurer Canopius says it is ‘not involved in any negotiations’ over the Queensland project

Ben Smee

@BenSmee

Fri 4 Oct 2019 14.44 AEST Last modified on Fri 4 Oct 2019 14.56 AEST

Canopius, one of two firms to have discussed insuring Adani rail line construction, has distanced itself from mine project. Photograph: Sam Panthaky/AFP/Getty Images

A Lloyd’s of London insurer – considered one of the few remaining possible underwriters for elements of the Carmichael coal project – has distanced itself from Adani and says it is not involved in negotiations.
Canopius was one of two global companies understood to have held discussions with a broker about insuring the construction of Adani’s proposed rail line, linking the Carmichael mine site to the Queensland freight network.

Both now appear to have ruled themselves out. It was reported on Thursday that Axis Capital withdrew its bid. Canopius said in a statement on Friday it was “not involved in any negotiations to provide insurance coverage for the Adani mine project”.

It wasn’t immediately clear whether its reference to the “mine project” was intended to also refer to the construction of the rail line.
Adani insists it has “the necessary insurance requirements in place, consistent with our construction activities”.
However, activist and investor groups have increasingly sought to provoke major insurers to withdraw, believing Adani’s Indian management would be unlikely to continue to finance the mine without sufficient risk mitigation in place.
Leaks solicited from an activist “dob in Adani” campaign revealed details about the latest insurance negotiations.
Prior to the statement by Canopius, 58 major companies, including 16 major insurance companies, had effectively ruled out dealings with Adani on the Carmichael project.
The growing list leaves relatively few insurers with the capability to support Carmichael and will mean increased attention on those who have yet to make definitive statements.
US-based financial giant AIG on Friday declined to comment on its position. The investor action group Market Forces says it understands Adani previously held policies with AIG that had been due to expire on 30 September.
AIG did not comment on questions about whether these policies had been renewed or extended.
Pressure on the company already has included protests at its Sydney and Melbourne offices, and calls for the world champion New Zealand rugby side to ditch AIG as a sponsor.
Market Forces campaigner Pablo Brait said that Canopius “needs to urgently clarify” its statement, and whether it would rule out insuring construction of Adani’s rail line.
“Adani’s options for insurance are rapidly shrinking for good reason,” Brait said. “No insurance company that properly understands the climate crisis would go anywhere near a massive new coal project.

“Now the focus is on AIG and Lloyd’s. AIG needs to come clean on its current relationship to the Carmichael project and Lloyd’s must provide assurances that its market will not be used to underwrite a disastrous new coalmine and rail line.”

Adani has said it will not discuss commercial or supplier relationships in an attempt to prevent business partners becoming the target of activists.

“Details on insurance providers for the Carmichael project are commercial-in-confidence, however we have the necessary insurance requirements in place consistent with our construction activities.”