Tag: adani australia

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.

Adani’s Abbot Point Coal Terminal faces residents legal challenge

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Photo: ABC News 24

By SAT News Desk

Melbourne, 24 June:
In Australia today, Queensland community group, Whitsunday Residents Against Dumping, which aims to protect the Great Barrier Reef from damage, is asking the QLD Supreme Court to scrutinise whether the QLD Department of Environment properly considered legislative tests when granting authority for Adani’s controversial Abbot Point Terminal 0 expansion to go ahead.

The first directions hearing is taking place in the Queensland Supreme Court.

Local grandmother, former tourism worker and spokesperson for Whitsunday Residents Against Dumping, Sandra Williams said, “Australia’s precious Great Barrier Reef is already in poor health, and Indian coal company Adani’s controversial port project, which will cause irreparable damage, has raised significant concern in our community.

“We believe the approval of Adani’s port proposal was unlawful and, long with many thousands of Australians, we feel that it is wrong to damage the glorious Great Barrier Reef to build a port for an unviable foreign owned coal mine that nobody wants or needs.

“Residents in our group have never taken legal action before, but we were forced to because of our worry that the approval of the port expansion, which will require damaging dredging and see hundreds of extra ships through the Reef each year, was not lawful.

“There is a question mark over whether the Queensland Department of Environment and Heritage Protection properly assessed the project, as required by law, before it gave this billion dollar proposal the green light.

“It is critically important that the decision, which has such grave implications for the Great Barrier Reef, is properly scrutinised.

“Both state and federal governments in Australia are allowing fossil fuel companies to expand the port, for a coal project that will decimate the Reef and its glorious corals, and threaten marine life, including endangered snubfin dolphins, turtles and giant manta rays.

“We should not have to take this project to court, but an independent review will help ensure proper scrutiny of the decision-making process.

“Our community group believes the law should be followed to the letter when permitting a project that will ship through our vulnerable Reef millions of tonnes of coal which, once burnt, will fuel climate change and cause continued coral bleaching events,,” Ms Williams said.

The Port of Abbot Point is located in north east Australia, and its boundaries extend into the Great Barrier Reef World Heritage Area.

In 2011 Indian company Adani Australia paid the Queensland government $1.8 billion for a 99-year lease of the Terminal 1 coal export facility at Abbot Point, and now the company is planning to develop a new T0 terminal beside the existing facility, to increase the Port’s coal export capacity by up to 70 Mt per annum.

Adani plans to use the new terminal to export coal from its proposed Carmichael mega-mine and other new mines in Australia’s Galilee Basin, 400kms inland.

The expansion of T0 will involve the onshore construction of rail in-loading facilities, coal handling and a doubling of the stockpile area. The coal stockpiles will be located less than 50m from important Aboriginal heritage sites, and coal dust will drift onto the wetlands and marine waters.

The expansion will involve dredging 1.1 million cubic metres of seabed at Abbot Point, and dumping it on port land right next to the delicate Caley Valley wetlands.

Federal government approval of the port expansion was granted in December 2013, and Queensland state government approval in April 2016.

Adani’s operations in Australia are currently subject to three court challenges by environment groups, two by Indigenous groups and Adani itself it involved in at least nine commercial litigation cases.

- SAT News Service.

Queensland support for Adani coal mine hypocrisy : Greenpeace

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By SAT News Desk

Melbourne, 16 March: The Queensland Parliament’s support (on 15 March) for the approval of Adani’s $21.7 billion Carmichael Coal project has come under attack from the Greenpeace. It is ‘utterly irresponsible’ and ‘grossly hypocritical’ two days after saying coral bleaching is worsening in the Great Barrier Reef, the Greenpeace says.

The state Development and Natural Resources and Mines Minister Anthony Lynham said the House agreed a motion that all State Government approvals be provided to help create jobs in North and Central Queensland.

Government and Opposition speakers, including Dr. Lynham and Treasurer Curtis Pitt, told the Parliament that the project potentially offered thousands of jobs and much-needed economic development.

“It’s unbelievable. The Great Barrier Reef is Queensland’s most precious environmental asset. It is unique, it’s delicate, and it is at grave risk from climate change, as we are seeing right now with coral bleaching,” said Shani Tager, Greenpeace Australia Pacific reef campaigner.

“Instead of offering words of support for the coal industry under the banner of creating potential jobs, the Queensland government needs to protect the Great Barrier Reef, which provides jobs for more than 69,000 people already.

“Allowing any new coal mines will worsen the threat to the reef, and is incredibly hypocritical, given the Queensland government’s continued promises to UNESCO that it will protect this World Heritage icon. Instead of wasting their time with empty statements of support for the coal industry, the Queensland government should be working to transition to clean energy and sustainable jobs.”

“Jobs associated with Carmichael have been grossly overstated, as the Land Court heard. There are no sustainable jobs in coal.

“The Queensland Government seems to have forgotten that coal creates carbon emissions. If the Carmichael mine, the biggest proposed coal mine in Australia, gets built, the coal will be burnt overseas, driving climate change, warming our oceans and contributing to coral bleaching.

“It doesn’t matter if it’s burnt in India, in Korea or Australia. Climate change is a global problem and exporting the coal makes it our problem when the future of the Great Barrier Reef is at stake,” said Ms Tager.

“The Carmichael project is in financial disarray, coal is in structural decline, and the mine still faces legal challenges.”

If it ever got to full production, the 28,000ha Carmichael coal mine would put 121 million tonnes of greenhouse gas into the atmosphere each year and ship 60 million tonnes of coal directly through the heart of the Reef, a Greenpeace media release says.

- SAT News Service