LONDON (Reuters) - Lloyd's of London firm Apollo has written insurance for Adani Enterprises' ADEL.NS Carmichael thermal coal mine which expires in Sept 2021 but is not planning to provide any further insurance for the mine, according to a memo seen by Reuters.
Carmichael has provoked controversy in Australia because it would open up a new thermal coal basin at a time of growing concerns over global warming, in a region that is in need of jobs.
Adani has begun construction at Carmichael, which will start by producing 10 million tonnes of coal per year together with an associated rail project, and expects first production in 2021.
“We participate in one construction liability policy in respect of Adani Carmichael...this particular policy terminates in September 2021 after which we will no longer provide any insurance cover for this project,” chair of Apollo Syndicate Management Julian Cusack said in the memo.
“We have recently declined to participate in an additional policy relating to the port and rail extension and have agreed that we will not participate in any further insurance policies for risks associated with this project.”
Cusack confirmed to Reuters via LinkedIn that he had written the memo. Adani did not immediately respond to a request for comment.
Many insurers, mainly in Europe, have scaled back their exposure to coal.
Lloyd’s of London [SOLYD.UL], which has more than 90 syndicate members, does not have an overarching policy on coal, though the Stop Adani campaign says 17 Lloyd’s insurers have ruled out insuring the mine.
“It is encouraging to see that 27 major insurers, including those which have previously underwritten this disastrous project - like Apollo - are now refusing insurance to Adani,” said Pablo Brait, campaigner at Australian action group Market Forces.
“The project will help open up a massive new thermal coal basin in the midst of a climate crisis...any insurer that provides coverage for Adani’s coal operations in Australia is seriously risking its reputation.”
Editing by Sinead Cruise
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