Skip to main content

Adani coalmine delayed? Australian senate fails to pass crucial "reform" amendment for project's financial closure

Adanis' Mundra power plant, controversial in Australia
By Our Representative
In what is being described as a new “new hurdle”, the proposed Adani coalmine in the Queensland state of in Australia failed to get the crucial Australian Parliamentary nod, essential for financial closure for one of the biggest coalmining projects in the world. The government lost the Senate vote 35-33, meaning the legislation won't pass until the Senate returns in mid-June.
The Australian Parliament was to pass “critical reforms to native title laws, designed to remove a key obstacle to the project going ahead”, but the crucial vote was postponed. Following the defeat, Attorney-General George Brandis moved to suspend the Senate's schedule.
In India last month, Australian Prime Minister Malcolm Turnbull promised Gautam Adani, chairman of the powerful Adani Group, known to be close to Prime Minister Narendra Modi, that he would deliver the reforms to Australia’s native title regime to ensure that the Adani “could secure an Indigenous Land Use Agreement (ILUA) with Traditional Owners.”
“In failing to secure the important legal change, Adani continues to be unable to move to financial closure. The Carmichael project in Queensland is yet again delayed, and remains in limbo seven years after the top Indian business group acquired the project proposal and promised first coal by 2014,” said Tim Buckley from the Institute of Energy Economics and Financial Analysis (IEEFA).
While Australian Resources Minister Matt Canavan has told the Australian media that this “does put into question [Adani’s coal] project. It does mean [Adani] will have a delay in their final investment decision”, Labor leader Bill Shorten, following the vote, said his party would support the laws when they would come for vote in mid-June.
However, Greens senator Rachel Siewert accused the government of ignoring issues with the proposed changes."They want to rush this through so Adani can go ahead with their dirty coalmine," she said.
"Though the failure of the Senate to pass the amendments today will mean some delays in some early works, the company remains on track to make the crucial financial decision this month," an Adani spokesman said.
The legislation amendments the Native Title Act to resolve legal uncertainty around more than 120 indigenous land use agreements relating to major projects, including the $21 billion Carmichael mine.
Meanwhile, the powerful Australian environmental lobby opposing the coalmining project has begun to make the Adani threat to close down the Mundra power project in Gujarat following the Supreme Court disallowing any revision in the price at which the power is to be sold an example to show why the Australian coalmining project is not viable.
“The admission by Adani Power’s management this week that the 4.6GW Mundra Power Plant is not able to viably produce electricity from expensive, imported coal is another serious obstacle to this Carmichael coal proposal ever reaching financial close”, said Buckley.
“Not only does this require a US$600m write-off of contingent revenues previously booked, but it calls into question the stranded asset risks associated with the entire 4.6GW US$5bn capital investment”, he insisted.
“The latest solar tariff result this week for the Bhadla solar park in Rajasthan at a record low Rs2.62/kWh continues to call into question the strategic and commercial viability of any proposed coalmine premised on ongoing Indian thermal coal import demand, a strategy clearly out of alignment with the Government of India’s stated strategy for zero thermal coal imports,” Buckley insisted.

Comments

TRENDING

India's GDP down by 50%, not 23%, job loss 200 million not 122 million: Top economist

By Our Representative  One of India’s topmost economists has estimated that India’s Gross Domestic Product (GDP) decline was around 50%, and not 23%, as claimed by the Government of India’s top data body, National Statistical Organization (NSO). Prof Arun Kumar, who is Malcolm S Adiseshiah chair professor, Institute of Social Sciences, New Delhi, said this was delivering a web policy speech, organised by the Impact and Policy Research Institute (IMPRI), New Delhi.

Youngest of 16 activists jailed for sedition, Mahesh Raut 'fought' mining on tribal land

By Surabhi Agarwal, Sandeep Pandey* A compassionate human being, always popular among his friends and colleagues because of his friendly nature and human sensitivity, 33-year-old Mahesh Raut, champion of the democratic rights of the marginalised Adivasi people of Gadchiroli, Maharashtra, has been in prison for over two years now.

India performs 'poorly' in Quality of Life Index, ranks 62nd out of 64 countries

Counterview Desk “Expat Insider”, which claims to be one of the world’s most extensive surveys about living and working abroad, in a survey of 20,259 participants from around the globe, has found that of the 64 destinations around the globe, has found that while Taiwan is the best destination for persons living outside their native country, closely by Vietnam and Portugal, India ranks 59th.

#StandWithStan: It's about Constitution, democracy and freedom of expression

By Fr Cedric Prakash SJ*  It is more than three weeks now: On the night of October 8, 2020, the 83-year-old Jesuit Fr Stan Swamy was taken into custody by the National Intelligence Agency (NIA) from his residence in Ranchi to an undisclosed destination. According to his colleagues, the NIA did not serve a warrant on Fr. Stan and that their behaviour was absolutely arrogant and rude.

Stan Swamy vs Arnab Goswami: Are activists fighting a losing battle? Whither justice?

By Fr Sunil Macwan SJ* It is time one raised pertinent questions over the courts denying bail to Fr Stan Swamy, who was arrested under the Unlawful Activities (Prevention) Act (UAPA), and granting it to Arnab Goswami, editor-in-chief of the Republic TV, arrested under the charge of abetting suicide of Avay Naik, who ended his life in 2018. It is travesty of justice that a human rights activist is not only denied bail but is also made to wait for weeks to hear a response to his legitimate request for a straw to drink water, while Arnab Goswami walks free.

Human development index: India performs worse than G-20 developing countries

By Rajiv Shah A new book, “Sustainable Development in India: A Comparison with the G-20”, authored by Dr Keshab Chandra Mandal, has regretted that though India’s GDP has doubled over the last one decade, its human development indicators are worse than not just developed countries of the Group of 20 countries but also developing countries who its members.

Namaz in Mathura temple: Haridwar, Ayodhya monks seek Faisal Khan's release

By Our Representative As many as 23 members of the Hindu Voices for Peace (HVP), including the founder president of the well-known Haridwar-based Matri Sadan Ashram, Swami Shivananda Saraswati, and a one of its top monks, Brahmachari Aatmabodhanand, have expressed their “dismay” over the arrest of Khudai Khidmatdar chief Faisal Khan and three others on charges of “promoting enmity between religions” and “defiling a place of worship” after they offered namaz in Mathura’s Nand Baba temple premises on October 29.

Buddhist shrines massively destroyed by Brahmanical rulers in "pre-Islamic" era: Historian DN Jha's survey

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Government of India 'refuses' to admit: 52% of bird species show declining trend

Finn's Weaver  By Our Representative The Government of India has been pushing out “misleading” data on the country’s drastic wildlife decline, says a well-researched report, pointing towards how top ministers are hiding data on biodiversity losses, even as obfuscating its own data. It quotes “State of India’s Birds Report 2020” to note that of the 261 out of 867 bird species for which long-term trends could be determined, 52% have declined since the year 2000, with 22% declining strongly.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.