Greens cheer as Deutsche Bank dumps Abbot Point

DEUTSCHE Bank has vowed not to participate in the planned $1.8bn development of Abbot Point coal terminal near Townsville.

Deutsche Bank has vowed not to participate in the Abbot Point coal terminal near Townsville. Picture: Mark Cranitch

ENVIRONMENTALISTS have claimed a victory after Deutsche Bank vowed not to participate in the $1.8bn development of Abbot Point coal terminal near Townsville because of concerns about its ­impact on the Great Barrier Reef.

In Frankfurt on Thursday Deutsche Bank co-chairman Juergen Fitschen said the bank would not entertain “financial applications’’ for the port development because there was no consensus between the Australian government and UNESCO over the environmental impact of the port development and associated dredging.

The UNESCO World Heritage Committee is due to be updated by the federal government on efforts to address concerns that led to warnings last year the reef could be placed on the endangered list.

Environmental groups took their concerns about Abbot Point to the international banks that fin­ance big coal projects, highlighting the growing sophistication of campaigns against resource development in Australia.

Fronted by Whitsunday tour boat operator Tony Brown, the environmentalists campaigned against Deutsche and other international banks participating in the port development.

Two Indian companies, Adani and GVK — which is in a joint venture with iron ore billionaire Gina Rinehart’s Hancock Prospecting — want to expand the port between Townsville and Mackay to ship out tens of millions of tonnes of thermal coal from a planned new complex of mines in the Galilee Basin.

Deutsche was targeted for its role, with the Commonwealth Bank and Westpac, in refinancing a $1.25bn loan to Adani to buy a 99-year lease on the Abbot Point terminal from the Queensland government in 2011.

“We have put strict guidelines in place to make it clear that we would not consider any request to finance an expansion unless we had the assurance of both the government and UNESCO that it would not adversely affect the World Heritage Site,’’ the bank said.

“We observe that there is no consensus between UNESCO and the Australian government regarding the expansion of Abbot Point. Since our guidance requires such a consensus as a minimum, we would not consider a financing request.”

Greenpeace campaigns director Ben Pearson said Deutsche’s policy sent a warning to local banks that supporting such developments carried reputational risk.

“How is it that a German bank recognises the unacceptable impacts of coal expansion in a World Heritage Area before our own Australian banks do?’’ Mr Pearson said. Australian banks declined to comment on the ban.

Both the Queensland Mining Council and GVK Hancock played down the significance of the decision.

“This doesn’t impact our proposed projects in any way,” a spokesman for GVK Hancock told The Weekend Australian.