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.
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
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
By News Desk
Melbourne, 5 February: House Broker for Adani Enterprises Ltd (AEL), leading investment bank Morgan Stanley, has reported that the Indian coal conglomerate has no intention of developing its planned Carmichael mine in Queensland, Australia’s Galilee Basin until coal prices increase, and a claim directly at odds with Adani’s own December 2013 quarter results report issued on Friday 31 January.
Morgan Stanley’s research report values the Indian coal conglomerate’s Carmichael project at $0.
The proposed Carmichael mine is the ostensible driver behind Australia’s Federal Environment Minister Greg Hunt’s approval in December 2013 of the highly contentious new ‘Terminal Zero’ port development at Abbot Point near Bowen in Queensland.
This development requires dredging and dumping of 3-million cubic metres of seabed in the World Heritage listed Great Barrier Reef to accommodate up to six new coal ship berths, making it the world’s largest coal port. The approval for the dumping has been given and is facing firm opposition from environment groups.
The port development itself is facing trenchant opposition, and UNESCO’s World Heritage Committee has required the Australian government to showcause why the Great Barrier Reef should not be listed as World Heritage in Danger.
- SAT News Service