Tag: adani australia

Carmichael mine will be self-financed, says Adani Mining CEO Lucas Dow

By Neeraj Nanda

MELBOURNE, 30 November: The controversial Carmichael coal mine and rail project in Queensland will be 100% financed through the Adani Group’s resources, Adani Mining CEO Lucas Dow announced yesterday in Central Queensland.

The project has faced fierce opposition from environmental groups who claim carbon emissions from the mine will badly hurt the nearby iconic Great Barrier Reef, already facing destruction from global warming.

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Adani Australia CEO Lucas Dow. Photo: Adani Mining Twitter

In an Adani Mining media release, Dow says, “We have already invested $3.3 billion in Adani’s Australian businesses, which is a clear demonstration of our capacity to deliver a financing solution for the revised scope of the mine and rail project.

“The project stacks up both environmentally and financially.
“Today’s announcement removes any doubt as to the project stacking up financially,” he says.

The media release claims, “The Carmichael Project will deliver more than 1,500 direct jobs on the mine and rail projects during the initial ramp-up and construction phase, and will support thousands more indirect jobs, all of which will benefit regional Queensland communities.”

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Photo: Greenpeace Australia

Meanwhile, in a media release, the Wangan & Jagalingou Traditional Owners Council says, “‘They don’t have our consent, they can’t build their mine.

“We demand a guarantee from the Queensland Government they won’t now extinguish our native title for Adani. Queensland Labor has said they recognize that the registration of the Adani ILUA is contested and they acknowledge and respect our right to have our complaints considered and determined by a court.

“We have an appeal before the full bench of the Federal Court. To act before this concludes would be to deny our rights and open the way for a grave injustice. Without our consent, the mine is not ready to proceed”.

There has sprung a strong lobby group against the mine. Their concerns are the damaging impact of the mine on the Great Barrier Reef, on groundwater at the site, greenhouse emissions, and extinction of already endangered species. Mackay Conservation Group has already won its legal challenge on the last issue.

Protest at Adani HQ in Townsville, 4 arrested

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Photo: Frontline Action on Coal

By SAT News Desk

MELBOURNE, 14 November: Fifteen people today occupyed the Adani Australia Headquarters in Townsville, including five people who locked themselves together to stage a peaceful sit-in. Graeme, Robert, Ioan, Anne and Kay, who are locked on, are all from Queensland, sent a clear message during the state election that Queenslanders oppose this development.Four of the protesters were later arrested, says an update from the Frontline Action For Coal.

Graeme Sharp, one of the people locked on, is a retired engineer in the mining industry, and says “We have to accept from a world perspective that coal and oil are no longer the answer to our electricity and transport needs. Renewable electricity is cheaper and practical and can power electric vehicles. We have to do this for our children. ”

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Photo: Frontline Action on Coal

Protest against Adani has been amplifying across Australia, including on the ground at the construction site.

Polls have shown that two-thirds of Queenslanders oppose taxpayer money funding the Adani railway. Adani is a key focus of the Queensland election, with Palaszczuk already backflipping and promising to veto the $1 billion loan to Adani to build the rail. LNP have sustained their backing of the project, including a push to develop a dam at Urannah, which would supply water to the mine.

Dr Robert Chataway, also locked on, is an agricultural scientist with Department of Natural Resources, working on the reef management plan. “I was really pleased when Labor was elected on the promise to protect the reef at the last election.” Says Robert. “The approval of the mine now undermines our whole work to manage reef catchments and sediment”.

Adani’s Carmichael Coal project a house of cards: Report

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Map:IEEFA

By SAT News Desk

Melbourne, April 24: The proposed Carmichael Coal project in Queensland by India’s Adani group has once again come under the cloud with a new report by the Institute for Energy Economics and Financial Analysis (IEEFA) saying “Mounting debt across the Adani Group suggests that the Indian conglomerate’s Carmichael mine proposal for northeast Australia has become an increasingly precarious house of cards.”

The report— “Adani: Remote Prospect: Carmichael Status Update 2017”—notes that Adani Enterprise Ltd.’s equity market capitalization has declined from over US$10 billion in 2015 to $1.9 billion today. Relative to net debt estimated at $2.5 billion, this capitalization is wholly insufficient to underwrite even the reduced $5 billion total project cost for Carmichael.

“Adani’s proposal has all the fundamentals of a feckless entrepreneurial scheme reminiscent of those last seen in Australia in the 1980s,” said Tim Buckley, Director of Energy Research at IEEFA and lead author of the report. “Absent massive taxpayer subsidies, no independent investor would give the proposal a second glace given its strategic and financial predicament, particularly set against a rapidly declining market for seaborne thermal coal.”

“The leveraged nature of Adani Enterprises, which controls the Carmichael project, is mirrored across the whole Adani Group,” a IEEFA media release says.

The media release says, “Since early 2015, the Adani group has seen estimated net indebtedness rise by US$3 billion to $15.9 billion. Adani Power alone, mooted as the key off-taker for the Carmichael coal, has net debt of US$7.6bn, and its auditors qualified their most recent review of the company with notes on a material weakness in financial controls. Adani Power, then, is an unbankable off-taker.”

The report describes how the Adani Group currently has a pipeline of US$30 billion of mostly greenfield projects in India in addition to Carmichael, including $10 billion or more in renewable energy proposals plus proposed diversifications into new business areas as various as defense systems and copper smelting.

“Gautam Adani is an ambitious businessman with a broad range of proposals on the table at any one time. Since the purchase of Carmichael in 2010, the forward market value of its coal has declined 50% and thermal coal imports in India are down double digits in line with the government’s stated policy to nearly cease imports entirely by the end of this decade,” Buckley said. “Adani took a calculated business risk on this speculative project in 2010 but the world has changed since then. No longer strategically aligned nor financially robust, today it is less a gamble, more a shot in the dark.”

India’s energy transformation is one of the main drivers of the structural decline of the seaborne the thermal coal that has emerged since 2014.

“India’s government commitment to ending thermal coal imports and its ambitious target of 275GW of renewable energy installations by 2027 is among the forces eating away at the rationale of the Carmichael project.

Record-breaking auctions in India for both solar and wind energy have driven down renewables costs to new lows. Both are now cheaper than new coal in India.”

As a result, coal imports have dropped 22-25 percent year on year over the past two months. Meanwhile, Adani’s Indian renewables and transmission businesses are well aligned with government plans for rapid cost-competitive renewable energy expansion and the provision of electricity to its population.

“Private capital has already vacated the playing field,” Buckley said. “Australian and Indian taxpayers have become the only potential sources of funding, but it should be clear that Carmichael has never looked like more of a stranded asset than it does today.”

Adani’s ‘ironclad’ guarantee against 457 visas for Carmichael mine but opposition wants written commitment

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Gautam Adani. Photo: Twitter

By SAT News Desk

Melbourne, 6 December: Queensland Premier Annastacia Palaszuk has said she had an “ironclad” guarantee from Gautam Adani that there will be no foreign workers brought under the 457 visas for the $ 16.5 billion Carmichael coal mine project. Though there is no written agreement on it. The Queensland Premier announced this after a meeting with the Adani Group boss in Townsville today. Mr. Adani, considered close to the Indian Prime Minister Mr. Narendra Modi had yesterday met the Australian Prime Minister Malcom Turnbull at a private meeting and briefed him the project details.

ABC reports Queensand Opposition Leader Tim Nicholls said written assurances would be preferable.

“The Premier has said she takes Mr Adani at this word and that’s fine, but I would have thought it would have been better to assure Queenslanders that we had some written commitments that jobs from this project will go to Queenslanders,” he said.

The Adani group today announced five regional towns will provide vital support services for the projects.
In a media release the Chief Executive of Adani Australian, Jeyakumar Janakaraj, said Emerald, Clermont, Moranbah, Collinsville and Charters Towers would be the source of support services including workers for its projects.
 “We are particularly focusing on the construction of our planned near-400km rail line to be constructed between the Carmichael mine and our bulk port facility at Abbott Point near Bowen,” Mr Janakaraj said.
 “So we need people and services in the region to build that rail link, as well as companies to provide resources.”
 The provision of good, services and labour from the regional towns would be supplemented by Rockhampton, Mackay and Townsville.
 Mr Janakaraj said Adani had also announced that Townsville would be the site of the Regional Headquarters for the Carmichael coal mine project.
 Mr Janakaraj said Townsville would also be home base for the company’s Project Management Office, and provide port services for incoming materials.
The original plan of the company was to have the project offices in Brisbane.

The Australian Conservation Foundation yesterday calling it a dirty deal said, “This coal mine would be a global climate catastrophe. It is dangerous to our planet and the people and places we love. Australians don’t want this mine, we want our reef and a clean, safe future. 
Malcom Turnbull has a clear choice. Honour an iron clad election promise or do a dirty deal with Adani to use Australian taxpayers’ money to fund a coal-carting railway line from the Galilee Basin to the Great Barrier Reef coast.”

Meanwhile, in a media statement the Wangan & Jagalingou Traditional Owners Council has announced a fresh court action against the proposed project after expressing anger at Mr. Gautam Adani not meeting them.

Greenpeace slams $ one billion taxpayer funding for Adani mine rail

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Photo: International Railway Journal

By SAT News Desk

Sydney, 3 December 2016 – The Turnbull government using taxpayer money for the Carmichael coal rail line is a train wreck of an idea, says Greenpeace Australia Pacific.

The Courier-Mail reported the Northern Australia Infrastructure Facility has given conditional approval for up to $1bn in taxpayer funding for the North Galilee Basin Rail project that would exclusively service the Carmichael mine. During the election campaign, the Prime Minister said there would be no public funding for the Carmichael coal mine.

“This is a train wreck of an idea and it must be stopped. No more taxpayer money should be wasted on coal projects that threaten our Great Barrier Reef,” said Greenpeace Australia Pacific reef campaigner Shani Tager.

“Malcolm Turnbull already promised not to waste Australian taxpayers’ money on a project that could be a death sentence for the Great Barrier Reef. Now he’s tearing up that promise at a time when the Great Barrier Reef is fighting for survival.

“While the world is moving away from coal, the federal government is looking at funding a project that some of the biggest banks in the world won’t go near and the Queensland Treasury has called unbankable. It’s absurd to prop up a project that banks won’t touch.

“It’s outrageous that two days after the government had to report to Unesco on how it is protecting the Great Barrier Reef, it’s now throwing money at the Carmichael mine that would be disastrous for the reef’s health.”

Just last month the former chairperson and chief executive of the Great Barrier Reef Marine Park Authority called for a ban on new coal mines in order to conserve the health of the Great Barrier Reef.

If it ever got to full production, the 28,000ha Carmichael coal mine would put 121 million tons of greenhouse gasses into the atmosphere each year and ship 60 million tons of coal directly through the heart of the Great Barrier Reef.