Adani Coal’s Rail Contractor Seeks Help for Insurance
Adani Enterprises Ltd's controversial Australian Carmichael mine project’s rail contractor BMD Constructions Pty Ltd has asked the government for help to
Adani Enterprises Ltd's controversial Australian Carmichael mine project’s rail contractor BMD Constructions Pty Ltd has asked the government for help to obtain insurance that it has not been able to secure from markets as global insurers, along with banks and other industries, have come under pressure from shareholders and climate activists to stop facilitating fossil fuel mining projects.
BMD, in a submission to an inquiry into regulation of investment in Australia's export industries, said it has not been able to obtain public liability insurance, environmental protection insurance or director and officer insurance. Its insurance broker had checked with 33 underwriters across the global insurance market but all had declined to provide public liability insurance for the project.
Either, clients must absorb the risk or governments provide the necessary insurance from public funds to ensure the export industry is supported.
BMD Constructions Pty Ltd is building a section of a 210 km rail line that will service Adani's controversial Carmichael mine in northern Queensland state, which is due to start operations later this year.
Adani's mine is slated to produce 10 million tonnes of thermal coal a year.