Tag: Adani Australia coal project

Adani’s project: Greed over planet (Video interview- Geoff Law, Editor, Adani Watch)

Tussle Between Those Who Want to Save the Planet and Greedy Corporates
Adani’s project: Greed over
The issue has become an international one, says Geoff Law, Editor, Adani Watch, a website that is part of an initiative of the Bob Brown Foundation, in an exclusive interview with Newsclick.

Source: Newsclick

Protesters lock themselves to machinery to halt work starting at the Adani coal mine

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By SAT News Desk

MELBOURNE, 25 October: The anti-Adani coal mine stir today took a dramatic turn with several people attaching themselves to construction machinery, vowing to continue the protest against the coal mine in Central Queensland. The protest, says a media release, stopped the work for many hours.

Supported by over a dozen people, one person got attached to a front-end loader, another to an excavator and a third person attached themselves to a grader, stopping construction work.

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The protest action took place where the state development area crosses the Gregory Highway, approximately 35km / 25 minutes south of the Belyando Roadhouse.

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“I’m scared about my children’s future. I think our government is seriously underestimating the potentially devastating impacts of climate change. Now is the time to take a stand. I’m an ordinary person taking extraordinary action to stop this mine.” said, Gail Hamilton, an engineer and former council employee from Townsville.

“My granddaughter has just turned five, I’m here to Stop Adani and protect the environment and our water for her future,” said fellow protestor Susanne Rix, from the Blue Mountains.

“I could not sit idly by and let Adani begin work. This is the line in the sand for me and thousands of people from all walks of life who will take peaceful direct action to stop this mine,” said John Brinnand, a retired psychiatrist from the Sunshine Coast.

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The mine would be one of the greatest coal mines in the world, releasing billions of tonnes of carbon pollution into the atmosphere. The Great Barrier Reef would be badly affected, already facing large-scale blenching due to rising ocean temperatures, caused by climate change.

Recent polling indicates that the majority of Australians do not support the mine. Despite this, the Queensland and Federal Governments are gearing up to hand Adani Australia a $1 billion taxpayer-subsidized loan for the project. 

All photos: Front Line Action on Coal (FLAC), Australia.

Nod to Adani coal project: Greenpeace thunders, “Don’t assume this is end of story”

coking coal

By Our Correspondent

In one of its strongest warnings to the Adani Group, which has got environmental nod to go ahead with the Carmichael coal mining project in Australia, the world’s most influential green campaigners, Greenpeace, has said, “Don’t assume this is the end of the story. The Carmichael mine cannot go ahead without the financial support of one the big four Australian banks. Greenpeace will make sure every Australian knows that any bank cutting a cheque for Carmichael is making possible a monster mine that will endanger our Reef and our climate.”
The warning came close on the heels of the Australian government’s decision to approve the Adani Group’s controversial A$16.5 billion ($15.5 billion) Carmichael coal and rail project in Queensland. Approved subject to strict conditions to protect groundwater, the Carmichael mine project could become Australia’s largest coal mine at 60 million tonnes a year amidst protests from green groups and marine tour operators, who are worried about carbon pollution and export of the coal from a port near the Great Barrier Reef.
“Carmichael coal mine’s impacts will be felt for generations”, Ben Pearson, Australia-Pacific programme director for Greenpeace, has said, adding, the project was approved despite the fact that Adani Group had “a dirty track record (pdf) n India”, where it “has been investigated and fined for illegally building on villagers’ land and destroying protected mangrove areas.”
Pearson recalled, “An investigation by the Karnataka anti-corruption ombudsman exposed Adani Enterprises’ active involvement in large-scale illegal exports of iron ore at its port, resulting in ‘huge’ economic losses to the Government. Documents seized from Adani’s offices revealed the company was paying cash bribes to port officials, customs, police and local pollies in exchange for ‘undue favour for illegal exports’.”
The decision was also taken, according to the Greenpeace exe, “despite global investors like Deutsche Bank and HSBC refusing to fund the mine’s associated coal port… They pledged to stay away from the project because they felt their reputation was at risk. Surely, if a German bank can see that these projects have an unacceptable impact on the Reef, Australia’s Environment Minister should be able too. And given the uncertainty about whether Carmichael will ever go ahead — and thus the new terminal — it just makes no sense to give it a tick.”
Pearson, whose reaction has been posted on the Greenpeace site, said he had “hoped” Greg Hunt, Environment Minister, “would stand up to the coal industry and reject the plea for environmental clearance. “Minister Hunt had the simple task of rejecting absurd proposals for the biggest coal mine ever proposed for Australia — the Carmichael mine — which requires a new coal export terminal and destructive dredging and dumping in our beloved Great Barrier Reef World Heritage Area. But for whatever reason, Hunt couldn’t do it”, he said.
“Made up of six open-cut pits and five underground mines, Carmichael mine will cover an area seven times that of Sydney Harbour. The only way to get coal out of Carmichael mine is via the Great Barrier Reef. Millions of tonnes of seabed will have to be dredged and dumped in the World Heritage Area to make way for port expansions to service this mega-mine”, said Pearson, adding, “Hunt gave the go-ahead to port expansions despite warnings from the Great Barrier Reef Marine Park Authority and UNESCO that the developments would place the World Heritage Area ‘in danger’.”
“Hunt approved Carmichael mine against independent expert advice that the mine could dry up endangered springs and drain sections of the Great Artesian Basin. The outback mine, which is located in a drought-prone farming area, requires a whopping 12 billion litres of water every year (pdf)”, the Greenpeace activist said, adding, “With this decision, the political system failed to protect the Great Barrier Reef, the global climate and our national interest”.
Source: Counterview

Adani’s Aust.Coal project unviable:US report

Gautam Adani

By News Desk

SYDNEY, 26 November 2013: India’s energy giant Adani Group has come under the cloud after a new report released today by the US-based Institute for Energy Economics and Financial Analysis (IEEFA) — Remote Prospects: A financial analysis of Adani’s coal gamble in Australia’s Galilee Basin — warns investors the controversial 60 million tonne per annum Carmichael coal mine and infrastructure project is uncommercial.
Report co-author, IEEFA’s Tom Sanzillo, former first deputy comptroller of New York said, “Our conclusion is that Carmichael presents a picture of unacceptable risk. It’s a high cost coal product in a low cost market in structural decline. The project is uneconomic by any measure,” said Mr Sanzillo.
“This project is on the wrong side of the coal boom. It might have been viable 5 years ago but the market has moved on. Adani bought in at the peak of the coal cycle but failed to predict the structural decline of coal,” Mr Sanzillo said.
“Adani is now overextended with unrealistically ambitious expansion plans, has no successful history of coalmining, has lost share value in critical segments, and is overleveraged, with $US12bn of debt against external market capitalisation of $US5.17bn. It is in not in a strong position to complete this project.”
Adani Enterprises is proposing to develop the 60 million tonne per annum thermal coal mine complex in the remote Galilee Coal Basin, central Queensland, Australia; construct 500km of rail infrastructure across agricultural land and floodplains to the coast; and develop a highly contentious coal export terminal through the iconic, UNESCO World Heritage listed Great Barrier Reef.
Key findings of the report include:
The estimated cost of production of A$87/t (energy adjusted) is likely to be above the global thermal coal price for the foreseeable future, rendering the project uneconomic.
Adani is in a weak financial position to execute such an ambitious project: with external equity market capitalisation at only US$5.17bn against estimated net debt of $12bn, development costs for the Carmichael and Abbot Point T0 coal terminal projects are estimated at US$10bn.
Adani has over-estimated coal quality while under-estimating costs and project complexities. At peak production of 60 million tonnes per annum, Adani’s Carmichael mine would be by far the largest coal mine in Australia in a remote inland region with no power, rail, water or workforce infrastructure. Prior to 2013, Adani’s only other experience in coal mining is a 2–4mtpa coal mine in Indonesia that has consistently performed below expectations.
The project is plagued by delays that continue to squeeze the Adani Group’s cash flow, with the company conceding the 2014 timetable for commencement of production has been pushed out to 2016, but more likely 2017 with full production beyond 2022.
Report co-author Tim Buckley, independent financial analyst said, “Our analysis shows a systemic problem with the financial viability of coal mining in the Galilee Basin. Adani may have thought they
were buying a coal mine, but it is increasingly likely that they have inadvertently bought themselves the world’s most expensive cattle station.”
“The Queensland government’s recent announcement of a royalty holiday for the first movers in the exploitation of Galilee coal signals to the market that these high-cost greenfield projects in Queensland are unviable from an investment perspective.”
Erland Howden, Energy Campaigner Greenpeace Australia Pacific, which commissioned the report, said, “It is clear that the Carmichael project, if developed, will be an environmental and climate disaster. This report shows that the project is also uneconomic.”
Adani Australia was contacted to get their response to the report and by an Email it said, ” Adani Mining will be a long term player in Australia and has complete confidence in the viability of the pipeline projects it is currently developing, including the Carmichael Coal and Rail Project, and the expansion of the Abbott Point Coal terminal.”
“In the short to medium-term these projects will create many thousands of jobs and generate significant flow of economic benefits”
” The motivation at the heart of these reports is short-sighted, vested interests that ignore the long-term fundamentals that underpin Adani’s projects in the Galilee Basin and the development of the country at large,” the response said.