Company – On record
This profile is no longer actively maintained, with the information now possibly out of dateJulia Hovenier, Banks and steel campaigner, Julia@banktrack.org
Company – On record
This profile is no longer actively maintained, with the information now possibly out of dateJulia Hovenier, Banks and steel campaigner, Julia@banktrack.org
Why this profile?
Whitehaven Coal plans to build new coal mines and expand its existing assets. Expanding coal production goes directly against efforts to limit global warming and helps drive climate breakdown.
What must happen
Banks and other financial institutions must demand that Whitehaven Coal immediately halt all activities that expand coal infrastructure, and develop and implement credible phase-out plans for its existing coal mining activities, on a timescale aligned with Paris Agreement goals. In the absence of such commitments, banks must stop servicing Whitehaven Coal.
Take Action! |
Send a message to the banks funding Whitehaven |
Sectors | Coal Mining , Iron and Steel Manufacturing |
Headquarters |
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Ownership |
listed on Australian Securities Exchange
Whitehaven Coal's shareholder structure can be accessed here. |
Subsidiaries |
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Website | https://whitehavencoal.com.au/ |
Whitehaven Coal, established in 1999, is an Australia-based company engaged in the mining of coal and the development and operation of coal mines in New South Wales and Queensland. It operates four mines, three open cut and one underground, in the Gunnedah Coal Basin in North West New South Wales, producing thermal and metallurgical coal for export to North and South East Asia. The company produces 13.7 million tonnes of coal annually. 84% of its revenue currently comes from thermal coal, but it is busy shifting its business model away from thermal coal, and towards metallurgical coal (i.e. coal for steelmaking)
Social and human rights impacts
Environmental and climate impacts
Impact on human rights and communities
Water wars Since its Maules Creek Mine began operations in 2015, Whitehaven’s pleaded guilty to having stolen 1 billion litres of drinking water. During one of the worst droughts New South Wales had ever seen, Whitehaven built illegal dams and water storages near the mine, diverting water away from local communities and farmers. Additionally, Whitehaven has gobbled up water licences by paying 5x the market rate, outbidding local farmers.
Clearing of Indigenous ancestral land The Maules Creek mine stripped away thousands of hecates of the Leard state forest, an ancient Gomeroi cultural site. For two years, many in the Gomeroi community fiercely opposed the mine. When the mine was constructed in 2014, many Indigenous artefacts and culturally significant sites were destroyed.
Health impacts from air pollution Whitehaven's coal is exported via the Port of Newcastle. Residents have expressed their opposition to air pollution originating from the transport of coal in uncovered coal railway wagons through the suburbs of Newcastle on the way to the port.
Impact on climate
Driving climate catastrophe Despite calls from the International Energy Agency (IEA) for no new coal mines, Whitehaven Coal has announced plans to spend AUD 2 billion building three new mines, and expanding existing assets. MarketForces found that if built, the three new mines could emit over 1.1 billion tonnes of CO2 over their lifetimes, which is more than double Australia’s annual emissions. They also found that the amount of coal that Whitehaven is forecasting is aligned with a scenario in which the world will be warmed by 4°C.
Perpetuating coal-based steel Currently, 84% of Whitehavens revenue comes from thermal coal (i.e. coal burned in a power plant). Citing difficulty in raising finance for thermal coal mines, Whitehaven has announced an intention to expand its metallurgical coal operations (i.e coal burned in a steel plant). With steel production accounting for 11% of global emissions, phasing coal out of the steel production process is essential as metallurgical coal mines are just as emissions intensive, and climate damaging as thermal coal mines.
Impact on nature and environment
Deforestation of endangered forest To build the Maules Creek mine, Whitehaven cleared 5,532 hectares (the equivalent of 10,300 football fields) of box gum grassy woodland - an ecosystem that is critically endangered. It was granted permission to clear the forest on the condition that they secured ecological offsets. In April 2020, Whitehaven was taken to court for not having secured said offsets, 7 years after they said they would.
Failure to rehabilitate drill sites In August 2021, Whitehaven was taken to court for breaches in its licence. One of the breaches was a failure to rehabilitate its drill sites and drilling bores. Whitehaven itself pleaded guilty to all 19 charges, and paid $372,500 in fines.
Other impacts
A decade of law breaking Grassroots organisation Lock the Gate developed a Whitehaven coal shame file. They list every incident in that last decade where Whitehaven coal was fined, breached the law, or had a publicly registered incident. The file shows that since 2011, Whitehaven has incurred nearly UA$ 1.5 million in fines, and been investigated or found guilty 35 times.
In October 2023 Jefferies Financial group and Bank of America provided Whitehaven with a USD 900 million loan to buy two new coal mines in Queensland Australia. They are now helping Whitehaven acquire a longer term loan involving other major global banks, with a deadline of November 30th 2023.
According to the Banking on Climate Chaos 2023 report, between October 2018 and October 2022 commercial banks financed Whitehaven Coal via corporate loans and underwriting services totalling USD 1.539 billion. See below for details on banks involved.
JPMorgan Chase (6.72%) and UBS (5.06%) hold, via various subsidiaries, shares in Whitehaven Coal, as of Dec 7 2022. See below for more details.
Thanks to campaigning efforts by MarketForces and Move beyond Coal, lenders did not renew a AU$ 1 billion debt facility that matured in June of 2023.
Whitehaven Coal can't be trusted
2024
2024-02-26 00:00:00 | Bank of America revealed to be the only bank providing new finance to Whitehaven
Bank of America is the only bank participating in a $1.1 billion bridge loan to Whitehaven coal for the aqqusition of two metallurgical coal mines, Daunia and Blackwater. The rest of the loan is financed by private credit institutions. This news comes just three weeks after it was revealed that Bank of America silently rolled back it's coal policy.
2023
2023-11-17 00:00:00 | Jefferies and Bank of America are helping Whitehaven raise new debt
According to Project Finance International, aftering providing Whitehaven with USD 900 million Jefferies and Bank of America are helping Whitehaven Coal raise new long term debt from other major global banks. The deadline for banks to join the syndicate is November 30th 2023.
2023-10-18 00:00:00 | Bankrolled by Bank of America & Jefferies, Whitehaven buys 2 new coal mines
Whitehaven Coal has won a US$ 3.2 billion bid for BHP Mitsubishi's Blackwater and Daunia coal mines in Queensland, Australia. Bank of America, and Jefferies provided a US$ 900 million bridge debt facility for the aqquisition of the mine, which is expected to lead to future long term financing.
2023-08-03 00:00:00 | Whitehaven Coal makes bid for BHP coking coal mines
Whitehaven Coal made record profits following Russia's invasion of Ukraine, which sent thermal coal prices soaring. With the extra money on it's balance sheet, it has submitted a bid to aquire BHP’s Blackwater and Daunia coal mines in Queensland.
2023-07-17 00:00:00 | Banks refuse $1b debt refinance to Whitehaven Coal
A group of 13 lenders, include Australian majors NAB and Westpac, as well as Japanese megabanks Mizuho, MUFG and SMBC refused to refinance a $1 billion loan facility. According to MarketForces: "This loan was first inked in early 2013, meaning this failure to renew marks the end of ten years of financial backing from major banks.".
2022
2022-05-20 00:00:00 | Deutsche Bank drops Whitehaven Coal bond issuance
After coordinated efforts by campaigners, Deutsche Bank withdrew it's involvement from a AU$1 billion bond issuance by Whitehaven Coal.