The ANZ Bank's abandonment of financing the vital Port of Newcastle is a disgrace.
It's a huge facilitator of upstream jobs in the cropping (grains: think listed GNC and unlisted Cargills/AWB) and thermal/coking coal mining, the latter undertaken by companies like the listed NHC, WHC and YAL among others.
Unfortunately the ANZS Bank is even more woke than NAB.
I hold NAB, NHC and yesterday bought above and below rail operator AZJ.
Coal is our second largest export. Our coal is higher quality than Indonesia's, yet if we inhibit coal exports to hungry Asia, emissions rise because Indonesian coal is far 'dirtier'.
Thousands of indirect jobs (including in sectors like aviation) depend on our coal industry. We ought be supporting and praising Hunter Valley coal miners, so it's great that NAB will assist in refinancing. I am very glad I don't hold ANZ.
Here's part of the article from 'The Australian' today, Tuesday 9 February 2021:
'ANZ has abandoned the world’s largest coal export port at Newcastle after refusing to keep funding the mega-facility under its new climate change policy that all but bans loans to the coal sector.
The resources industry is viewing the bank’s move to ditch the major economic hub north of Sydney as a test case of the new anti-coal and net zero emissions policies of the big four banks.
It has also triggered a strategic contest between the major lenders over the future of the coal industry, with the NSW Hunter Valley economy relying heavily on jobs in coal mines and at the Port of Newcastle.
Rival lender National Australia Bank, which has also adopted an aggressive climate change strategy, will now step in to help underwrite the port, which contributes $1.5bn to GDP and supports 9000 jobs, on the promise of a transition program to “diversified” and sustainable operations.
The ramping up of corporate lending threats against high emissions industries comes as the Morrison government is set to consider exempting trade exposed sectors from its net zero emissions goals.
Although the port could have gone to its Chinese backers — which co-own the facility — sources said this might have triggered national security concerns around the ownership of critical infrastructure. The Port of Newcastle on Monday warned that without “competitive funding” to support its diversification plans, the resilience of the Hunter Valley economy would be damaged.
The refinancing, which will involve NAB and other lenders, is part of a long-term process to support the rollout of the port’s environmental social and governance strategy and long-term shift into non-coal operations, including an automated, multipurpose deepwater container terminal...
...NSW Nationals senator Perin Davey said the growing “propensity of Australian financial institutions to prioritise climate risk-based financing practices over reasonable and legal business” was against the national interest.
“The risk is that if our financial institutions move away from investing in higher-emitting industries that those industries will just seek finance offshore,” Senator Davey said.
“And the fear on the ground is that this practice will not stop at large, coal-dependent industry. First coal, then mining contractors, then transport, then agriculture. Where does it end? Banks are sending signals to the market to make it more difficult for Australian business right when we are trying to reinvigorate it and bring things like manufacturing back on shore.”...'
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