Proxy adviser Glass Lewis said it was making the recommendation after an Australian court in last year said that Adani’s Abbot Point Terminal Pty Ltd engaged in monopolistic business practices.
The court awarded four companies $107 million over the issue Glass Lewis recommended shareholders take action by voting against the re-election of a member of Adani Enterprises’ risk committee.
But Adani’s Australian mining arm, Bravus Mining and Resources said the Glass Lewis claim that Adani Mining Pty Ltd was subject to litigation involving ‘”unconscionable conduct” incorrect. It was, it pointed out, a ruling made against Adani’s Abbot Point business, a separate entity to the mining operations.
“Glass Lewis’ reports about a court matter are incorrect, in that they do not relate to Bravus, otherwise known as Adani Mining Pty Ltd, or its operations. This court matter involved an entirely separate business, which is unrelated to the operations or governance of Adani Mining Pty Ltd,” a Bravus spokesperson said.
“The Carmichael Project has some of the strictest environmental conditions ever imposed on a mining project in Australia.”
“Over the past decade activists have unsuccessfully tried to use the Australian legal system to argue that the Carmichael mine should not be approved because of the emissions created when coal is used to generate electricity overseas and the impact that would have on the Great Barrier Reef.
Adani has also faced criticism over its business activities in Myanmar which is now under military control after a coup earlier this year. A Norway pension fund recently sold out of the Adani Ports and Special Economic Zone company over its continued presence in Myanmar.
However, Adani has said it condemned the violence against and violations of the fundamental rights of the people of Myanmar.
Adani Ports and Special Economic Zone (APSEZ) won the contract for the Yangon International Terminal Project in 2019, our counterparties were entities of the democratically elected government of Myanmar, and the Company’s investment decisions were made under very different circumstances.
“In view of the subsequent developments, we have appointed a US law firm to guide on approaching the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) on the way forward post sanctions imposed by UN on MEC. We are in constant touch with the Indian Embassy at Myanmar to ensure protection and safety of the employees.
“In a scenario wherein Myanmar is classified as a sanctioned country under the OFAC, or if OFAC opines that we are in violation of the current sanctions the Company has plans to abandon the project and will write-down its investments in the project in full. The write down will not materially affect the balance sheet as it is equivalent to about 1.3% of the total assets of APSEZ.”
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