Adani contractor left asking government for finance after insurers flee

The federal government has been asked to step in and provide finance to companies building Adani's Carmichael mine and rail link, after one of Adani's biggest contractors revealed it was unable to insure its work on the project, leaving it in breach of its contract.

BMD reportedly has a $350 million contract for work on the rail network that will deliver coal from the mine to the port. "An inability to obtain the insurances listed … placed BMD in breach of its contracts under which it was delivering the projects."BMD said it was unable to obtain public liability insurance, environmental protection insurance or director and officer insurance, despite searching around the globe for insurers.

Regulators have warned investments in those projects face serious risks as climate change becomes more extreme, and the world transitions away from fossil fuels.Australian Prudential Regulation Authority issued draft guidance to the finance sector Climate activists in Australia have also targeted Adani contractors and insurers, claiming victories as insurers around the world refuse to back the project.In its submission, BMD said the insurers were being forced into the position "by broad worldwide policies that are often forged in Europe and fail to consider the impact to the Australian and other markets dependent on a lawful coal industry".

In an appendix, BMD published an example of the exclusions one insurer insisted on, when insuring the company. It ruled out paying any claim in relation to work for any Adani group entity.

So BMD Constructions decided to ignore which way the (gale force) wind was blowing and made a really bad business decision to work for Adani. Now they blame their misfortune on”Europe” and are asking for a government handout.

Stranded asset. No one should be putting their money anywhere near this turd. Especially the governments of Australia.

No!

If it was good enough for car manufacturers, and coal can't stand on it's own 2 feet - then let it fail

This project should have never been approved given all the media reports on Adani’s chequered history.

How good is coal!!!

Does anyone have track of how much our various governments have either contributed or commited to this private, foreign owned project?

Political parties' government is an international broker. They sold many of country's resources & public sectors to 'private' as their own. Received their 'benefits' as commissions 💵 & donations 💵. These 'corruptions' are very dangerous than 'HELL' 😳

Why should taxpayers money back another company that pays little or no tax?

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