AXIS Capital rules out support for “destructive” Carmichael mine project

AXIS Capital rules out support for “destructive” Carmichael mine project | Insurance Business

AXIS Capital rules out support for “destructive” Carmichael mine project

A Lloyd’s of London insurer has become the latest to rule out support for the Adani Group’s Carmichael coal mine in Australia.

Read more: Lloyd's warned over legal risks of underwriting a controversial coal mine project in Australia

The growing list of major insurers who have already confirmed they will not insure the controversial mine project includes QBE Insurance Group, AXA SA, Allianz, Liberty Mutual Insurance, Munich Re, and Swiss Re. Meanwhile, Australian insurers QBE and Suncorp Group, as well as 14 other insurers have already adopted policies to cut their exposure to coal projects. 

Read more: Major insurers ditch controversial coal mine project

Now AXIS Capital has withdrawn its quotes for insurance of the mine’s railway and is set to publish a formal policy to cut its exposure to coal more broadly in the weeks ahead, a source close with the company told Reuters. 

The Queensland-based Carmichael mine, which received the green light in June after nearly nine years of fierce protests and political debate, would produce 4.6 billion tonnes of carbon dioxide over its lifetime and open up even larger mines for exploration in Queensland’s Galilee basin.

“The Adani Group’s giant Carmichael coal mine is incompatible with international climate targets and AXIS is the 15th insurer and 58th financial institution to rule out support for this project,” said Peter Bosshard, coordinator of the Unfriend Coal campaign. “All eyes are now on Lloyd’s insurer Canopius, which may still insure construction of the mine’s railway. Canopius must swiftly rule out support as well, or it will emerge as the insurer of last resort for climate-busting projects.”

Market Forces said it has received information that Adani’s broker Marsh has been in negotiations with Canopius and AXIS to cover construction of the mine.

“Adani continues to be abandoned by its corporate partners that don’t want to be associated with a destructive new coal project,” said Pablo Brait, Market Forces campaigner. “AXIS’s move, following engineering firm Aurecon’s severing of ties to Adani, shows the Carmichael coal project is toxic, not just for our climate but for a company’s brand, too.”

In response, Canopius issued the following statement to Insurance Business: "“Canopius is not involved in any negotiations to provide insurance coverage for the Adani mine project."