Tag: adani coal project

Controversy over planned $ 1 Billion (Rs. 5,000 crore) SBI loan to Adani coal project in Australia

imgonline-com-ua-twotoone-mWZGMvqI7gL

By SAT News Desk

MELBOURNE, 19 November 2020: Reports in The Tribune, published from Chandigarh (17 November 2020) that the State Bank of India (SBI) is all set to offer a Rs 5,000-crore loan to Adani Enterprises Ltd’s Australian mining company, now renamed Bravus Mining & Resources, has drawn flak from the environment and other groups in Australia.

The loan would facilitate the digging of the Carmichael coal mine and construction of Adani’s rail line that would open up the Galilee Basin, one of the largest unexploited coal reserves in the world.

Controversy surrounded a proposed loan from the SBI to Adani’s Carmichael project in 2014, which the bank then walked away from. A national day of action calling on the SBI to invest in a safe future and rule out any loan to Adani will take place on 20th November, with protests in Melbourne, Sydney, Brisbane, and Canberra.

Manjot Kaur, School Striker and university student from the central west coal region in NSW said, “My family in Punjab, India, comes from generations of farmers. My father, grandfather and many before have been farming wheat on the same land for generations. My grandfather has seen the weather change and struggled against drought. Climate change is hurting Indian families right now. If the State Bank of India loans Adani public money for their Queensland coal project, they will be helping fund climate disasters and striking another blow to Indian farmers. Indian farming communities that are fighting for their existence are the ones who deserve support from the state bank, not billionaires’ private coal projects.”

Dr. John Hewson, former leader of the Liberal Party, former Director of Macquarie Bank, and Professor in the Crawford School of Public Policy at ANU said, “Adani’s Australian operations are already drowning in debt as financial institutions increasingly shun the toxic project which will have disastrous environmental impacts. Funding Adani’s climate disaster would be an extremely risky move, the economics of the project simply don’t stack up. Proper due diligence on this loan would reveal that any public loan to Adani’s coal project is an irresponsible idea. I recognize that State Bank may feel that they are operating in India’s national interest, but handing out public funds for Adani’s coal project would be risky given the urgent global need to reduce emissions, and especially for a project that is destined to become a stranded asset.”

Pablo Brait, a campaigner with Market Forces said, “The State Bank of India must provide assurances that it won’t be handing over $1 billion of Indian taxpayers’ money to a well-connected billionaire for a coal mine in Australia. At a time when India is planning to phase out thermal coal imports, and with renewable energy already outperforming coal economically, we know that this decision by SBI couldn’t be made on financial or economic grounds. India, like Australia, is already grappling with the disastrous impacts of climate change and Adani’s mega-mine will make climate change worse. Adani’s project was a terrible idea in 2015 when the SBI last rejected financial support for Carmichael and is a much worse idea in 2020.”

Claire Galvin, a 19-year-old from North Queensland, said: “As a young Queenslander who’s grown up in Cairns, I’ve watched the Great Barrier Reef suffer back-to-back mass coral bleaching events, caused by climate change. If Adani’s coal mine goes ahead, it will lock in decades of carbon pollution and our Reef and the tourism jobs that rely on it will suffer. That’s why I’m taking legal action along with other young people in Queensland to challenge Adani’s national environmental law approval. The State Bank of India must rule out funding Adani’s coal project. At a time when India wants to phase out imported coal, it’s ridiculous to hand out public money to climate-wrecking coal mines.”

Following the intense controversy, the SBI walked away from a proposed $1billion loan to Adani for the Carmichael coal project in 2015. The decision to grant the loan was made during Indian Prime Minister Narendra Modi’s visit to Australia where he and Gautam Adani attended the G20 conference in Brisbane. Indian opposition politicians slammed the loan, calling it ‘crony capitalism’, that would hand Indian taxpayers’ money to a billionaire for a coal project in Australia.

Stop Adani says, “Adani has been forced to self-finance the Carmichael coal project after failing to secure finance from private companies. Over 89 companies have now committed to not supporting the controversial project. The SBI is now at risk of using public funds to finance a project the private sector has shunned, with Indian taxpayers’ footing the bill.”

Adani uses Getty stock images to show ‘angry locals’ in ad campaign

picture1
Photo: Mackey Conservation Group

By SAT News Desk

Melbourne, 28 October: In a move to gear up public opinion in its favor with ads headlined “No More Delays! We Want Work.” in Queensland The Adani Group is facing flak from a prominent environment group for his controversial Coal mining project for using Getty stock images in this advertising campaign.

Coordinator of the Mackay Conservation Group, Peter McCallum, says the Getty stock images The Adani Group used today (27 October 2016) in their Queensland advertising campaign, to represent angry locals, is “true to form and just another chapter in Adani’s sustained campaign of misinformation in a desperate attempt to build support for its controversial mining project”.

The ad campaign (see photo), running in state and regional papers, employs a stock Getty image of a “Large group of serious business people looking at the camera (see photo)”.

“Adani couldn’t even find real people to go into their ad campaign. Adani’s stock and trade is misinformation and this ad campaign is no exception,” said Mr. McCallum.

“The foreign owned miner continues to claim its project would create 10,000 jobs, when evidence provided in court, under oath, by Adani’s economic witness revealed it would only generate 1,464 additional jobs.

“Even with the port and rail line factored in, the project will only create a maximum of 25 per cent of the jobs Adani claims,

“Frustrating court action is another of Adani’s catch cries, yet our case resulted in the Environment Minister conceding that he made an error in his approval of the mine and the court then set it aside.

“Scrutiny by the courts has unveiled Adani’s habit of making misleading claims and doing poor environmental assessments, and has at the most delayed the project by one to two years.

“Adani is again manipulating communities this week to obtain discounts and subsidies from local governments, by playing regional cities off against each other to host the company headquarters.

“This foreign owned company, headquartered in Gujurat, doesn’t care about locals, our environment or the Great Barrier Reef, it cares about its profits. This is symbolized by the fact it couldn’t even find real people for this latest ad campaign.

“If we were to run newspaper ads we’d have no trouble finding Mackay residents, Indigenous representatives, farmers, reef scientists and tourism operators to have their photos taken.

“Adani can splash all the money around it likes, but at the end of the day the mine must stand on its own two feet, not be rushed through by governments bullied into action and acting against the best interests of Queensland locals and our precious environment,” Mr. McCallum said.

Adani’s Oz coal project in turmoil as SBI loan doubtful

SBI_RUN5940

By SAT News Desk
Melbourne, March 14 2015 – Adani’s controversial Australian Carmichael coal mine looks to be in jeopardy following reports that the State Bank of India (SBI) is preparing to decide against giving the company a planned $1 billion loan for the project due to concerns over its financial viability. The loan deal was signed during last year’s Australian visit of Indian Prime Minister Narendra Modi and was criticised as a loan to a company whose head is considered close to Mr. Modi.
A Reuter report’ “SBI to turn down Adani’s $1 billion Australian loan request – sources” (March 2014) says, “State Bank of India is preparing to turn down a $1 billion loan request from Adani Enterprises intended for a coal project in Australia, scrapping an agreement signed last year, sources with direct knowledge of the move said.
The sources said India’s largest bank had not yet given Adani officials notice of the internal ruling, but they said the decision was now due to be communicated to the group.”
The story further says, “SBI, which like all Indian state banks is under pressure to reduce its bad debts, said at the time that the signed deal was simply a memorandum of understanding. It would, it said, complete proper due diligence and a project appraisal before giving out any cash.”
Reacting to the news, Greenpeace Climate and Energy Campaigner, Nikola Casule, said:
“State Bank of India analysts seem to have realised that this project has no future. The wider financial community has long ago recognised that the project is on shaky financial ground. It is now up to the State Bank of India to make the right decision and refuse to fund Adani’s gamble with the hard earned money of Indian taxpayers.
“We already know that Adani’s coal project represents a serious threat to the Great Barrier Reef. Today’s news emphasises that it is an investment black hole as well.”
Adani has struggled to secure project financing for its $16.5 billion coal mine, rail and port expansion. Major global banks, including HSBC, Deutsche Bank and Goldman Sachs, have already refused to fund the project due to its damaging impact on the Great Barrier Reef, currently under consideration by World Heritage Body UNESCO for inclusion on its ‘in danger’ list.
“Banks all over the world are saying no to Adani. Even analysts from Australia’s ANZ bank are saying the project is not viable. No bank should be financing the Reef’s destruction,” Casule added.
- SAT News Service.

New court challenge to Adani’s Australian Coal project

Print

By News Desk

Sydney, 15 January, 2015: The Central Queensland community organisation, the Mackay Conservation Group (MCG), has launched court proceedings challenging Environment Minister Greg Hunt and the Indian owned mining company Adani Enterprises over the approval of the controversial Carmichael coal mine in Queensland.
In a statement posted on the Adani Australia’s website, the company says, “This legal challenge initiated by the Mackay Conservation Group, and funded by Getup, is an act designed to frustrate progress on an approved project, and reflects dissatisfaction with the Minister’s decision, rather than a genuine concern in regards to the assessment process.”
It also says, “It makes crystal clear that this is not an action dealing with the merits of a process that saw the strictest environmental conditions imposed in Australian history- rather, it is a highly politicised action by professional activists determined to put to an end the coal industry in Queensland and the jobs it delivers to our state.”
MCG has called upon the court to scrap the July 2014 approval to the mine on the grounds the Minister failed under his duty laid down by the Environment Protection and Biodiversity Conservation (EPBC) Act to take down stream greenhouse gas emissions from the mine into account.
“By approving Adani’s Carmichael proposal, the Australian Government is in major breach of its own environmental regulations,” said Ellen Roberts, Co-ordinator at the MCG.
“It is unacceptable at this time that any responsible government should wilfully ignore the climate implications of what could be one of the most polluting mines in the world.”
If it proceeds, at full capacity, the Carmichael mine would export 60 million tonnes per year (Mtpa) of thermal coal from the Galilee Basin to India, via the port of Abbot Point on the Great Barrier Reef coast.
When burnt, coal from the Carmichael mine will produce 128.4 million tonnes of carbon emissions per year at peak production, or four times the total carbon emissions of New Zealand.
“Queenslanders are being held hostage to the government’s desire to burnish its own image of ‘getting things done. Sabotaging farmland, water supplies and the Great Barrier Reef for the exaggerated short-term benefits of this mine – most of which would flow offshore – defies good policy and common sense,” said Roberts.
“In the face of climate change and the devastating effects of this mine on farmland, water supplies and the Great Barrier Reef, we simply must do everything we can to hold our government to account.”

- SAT News Service

ALP to halt govt. funds for Adani

adani mine
PHOTO: Greenpeace Australia

By News Desk

Melbourne, 14 January : If the Labor party wins the coming state elections in Queensland, one big looser will be the Adani’s Carmichaal Coal project in the Galilee Basin – one of the largest mine in the state. The project is already under cloud from environmentalists and is facing a court challenge.

A report in the ‘Guardian Australia’ says Labor will halt the ‘unprecedented’ financial support for the project pledged by the state’s conservative Liberal-National Campwell government. Indian reports,according to Guardian Australia, have indicated the Campwell government offering to invest $ 450 million in the project. The government has not confirmed the reports.

In November last year, India’s State Bank of India (SBI) in an MOU agreed to provide for a credit facility of up to $1 billion USD for the Charmichaal project.

Guardian Australia quotes Labor environment spokeswoman Jackie Trad as saying Labor will scrap hundreds of millions of dollars worth taxpayers funding for the project.

“Trad said the government was ‘arrogant and out of control’ and had refused to listen to the rural households about mining.

Mr. Adani is considered close of India’s new right wing government headed by Prime Minister Narendra Modi and last year accompanied him to the G-20 summit in Brisbane.

Adani Australia website claims the mining project will create 10,000 local jobs and contribute to $22 billion in taxes and royalties for investment into services.

- SAT News Service