SYDNEY — After months of speculation, the State Bank of India (SBI) has shelved the $1 billion loan it agreed to five months ago to help finance mining giant Adani’s plan to develop the Carmichael mega coal mine in Queensland’s Galilee Basin. This is the 12th global investment bank to publicly walk away from the proposal in recent months.

“This news is a massive blow to Adani and its ill-fated plan to mine Australian coal for export to Asia and turn the Great Barrier Reef in to a major shipping route,” said Blair Palese, 350.org Australia CEO. “The fact that Adani can no longer even rely on its historically cozy relationship with the State Bank of India is a true testament to just how toxic this proposal is, not only to the environment but the bottom line as well.

“We know that burning coal is the number one contributor to climate disruption and if we want to avoid going over the climate cliff, 90% of Australia’s coal must stay in the ground. This project has the potential to do irreparable damage to our national treasure, the Great Barrier Reef and to our climate as a whole. If developed, Adani’s project will tarnish Australia’s reputation for generations to come.

“SBI’s agreement with Adani plainly states that the project must prove to be commercially viable to move forward with financing,” Palese said. “Any prospective Australian investors should heed SBI’s warning and follow suit immediately. Adani needs to raise a staggering $16.5 billion to move forward with its disastrous plan, and to date, most of the major fossil fuel funders are ruling out involvement.

“We applaud the State Bank of India’s decision to walk away from Adani on this proposal and we will continue to build our campaigns at home to ensure we see similar leadership from Australia’s big banks in the very near future.” concluded Ms. Palese.

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