Indian mining giant Adani Group has abandoned plans to build a container terminal in partnership with the Myanmar military, after a sustained campaign from human rights advocacy groups, and concern from the global finance sector.
In April 2019, Adani signed a US$290m commercial deal with a holding company controlled by the Myanmar military, the Myanmar Economic Corporation (MEC), to build a container port in Yangon.
But a coup by the military in February – which followed a 2017 campaign of “genocidal intent” against the Rohingya minority – has left the Myanmar military internationally isolated, and seen sanctions imposed on senior military figures and military-controlled entities.
“The company’s risk management committee, after a review of the situation, has decided to work on a plan on exiting the company’s investment in Myanmar, including exploring any divestment opportunities,” Adani said in a statement, without further explanation for the withdrawal.
Adani Ports is expected to fully exit the investment by June of 2022.
Senior General Min Aung Hlaing led a military coup in Myanmar this year. Adani Group has pulled out of $290m deal with a holding company controlled by the military. Photograph: Reuters
The Justice for Myanmar advocacy group, which has campaigned against the Adani deal since it was signed, said it cautiously welcomed the divestment announcement.
“Adani Ports’ plan to divest shows community and investor pressure works. Business with the terrorist Myanmar military does not pay,” spokesperson Yadanar Maung said.
Yadanar Maung said Adani Ports should never have entered into a business partnership with MEC, a deal which made them complicit in the Myanmar military’s atrocities.
“Adani Ports must now find a way to exit responsibly by mitigating the impact on their Myanmar workers and recovering what they can of their $90m payment to MEC so they do not leave a windfall for the terrorist Myanmar military.”
Myanmar soldiers during a protest against the military coup in Yangon, Myanmar, in February. Photograph: Stringer ./Reuters
Rawan Arraf, executive director of the Australian Centre for International Justice, said it was untenable for Adani Ports to continue to do business with a sanctioned entity, under sustained pressure from the public and from investors.
“For years, Adani Ports ignored the clear and direct public warnings before and after it entered into business in Myanmar.
“It is positive that Adani Ports has shown an apparent willingness to engage in human rights due diligence obligations by divesting from Myanmar. However, there are massive failings connected to the Adani Group’s operations in India and Australia’s Carmichael mine that it must reconcile.”
Clancy Moore, the Australian director of NGO coalition Publish What You Pay, said other companies should take heed of the decision by Adani and an earlier move out of Myanmar by Australian oil and gas group Woodside.
“It’s time for resource giants, Total and Chevron, and small Australian backed companies like Access Mining Asia, PanAust and Tap Oil to rule out any business relationships or revenue flowing to the violent and corrupt military regime,” he said.
