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

What's Bill Gates up to? Have 'irregularities' found in funding HPV vaccine trials faded?

By Colin Gonsalves*  After having read the 72nd report of the Department Related Parliamentary Standing Committee on alleged irregularities in the conduct of studies using HPV vaccines by PATH in India, it was startling to see Bill Gates bobbing his head up and down and smiling ingratiatingly on prime time television while the Prime Minister lectured him in Hindi on his plans for the country. 

Muted profit margins, moderate increase in costs and sales: IIM-A survey of 1000 cos

By Our Representative  The Indian Institute of Management-Ahmedabad’s (IIM-A's) latest Business Inflation Expectations Survey (BIES) has said that the cost perceptions data obtained from India’s business executives suggests that there is “mild increase in cost pressures”.

Magnetic, stunning, Protima Bedi 'exposed' malice of sexual repression in society

By Harsh Thakor*  Protima Bedi was born to a baniya businessman and a Bengali mother as Protima Gupta in Delhi in 1949. Her father was a small-time trader, who was thrown out of his family for marrying a dark Bengali women. The theme of her early life was to rebel against traditional bondage. It was extraordinary how Protima underwent a metamorphosis from a conventional convent-educated girl into a freak. On October 12th was her 75th birthday; earlier this year, on August 18th it was her 25th death anniversary.

Govt putting India's professionals, skilled, unskilled labour 'at mercy of' big business

By Thomas Franco, Dinesh Abrol*  As it is impossible to refute the report of the International Labour Organisation, Chief Economic Advisor Anantha Nageswaran recently said that the government cannot solve all social, economic problems like unemployment and social security. He blamed the youth for not acquiring enough skills to get employment. Then can’t the people ask, ‘Why do we have a government? Is it not the government’s responsibility to provide adequate employment to its citizens?’

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah*   The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

IMA vs Ramdev: Why what's good or bad for goose should be good or bad for gander

By Dr Amitav Banerjee, MD* Baba Ramdev and his associate Balkrishna faced the wrath of the Supreme Court for their propaganda about their Ayurvedic products and belittling mainstream medicine. Baba Ramdev had to apologize in court. His apology was not accepted and he may face the contempt of court with harsher punishment. The Supreme Court acted on a public interest litigation (PIL) moved by the Indian Medical Association (IMA).

'Flawed' argument: Gandhi had minimal role, naval mutinies alone led to Independence

Counterview Desk Reacting to a Counterview  story , "Rewiring history? Bose, not Gandhi, was real Father of Nation: British PM Attlee 'cited'" (January 26, 2016), an avid reader has forwarded  reaction  in the form of a  link , which carries the article "Did Atlee say Gandhi had minimal role in Independence? #FactCheck", published in the site satyagrahis.in. The satyagraha.in article seeks to debunk the view, reported in the Counterview story, taken by retired army officer GD Bakshi in his book, “Bose: An Indian Samurai”, which claims that Gandhiji had a minimal role to play in India's freedom struggle, and that it was Netaji who played the crucial role. We reproduce the satyagraha.in article here. Text: Nowadays it is said by many MK Gandhi critics that Clement Atlee made a statement in which he said Gandhi has ‘minimal’ role in India's independence and gave credit to naval mutinies and with this statement, they concluded the whole freedom struggle.

Youth as game changers in Lok Sabha polls? Young voter registration 'is so very low'

By Dr Mansee Bal Bhargava*  Young voters will be the game changers in 2024. Do they realise this? Does it matter to them? If it does, what they should/must vote for? India’s population of nearly 1.3 billion has about one-fifth 19.1% as youth. With 66% of its population (808 million) below the age of 35, India has the world's largest youth population. Among them, less than 40% of those who turned 18 or 19 have registered themselves for 2024 election. According to the Election Commission of India (ECI), just above 1.8 crore new voters (18-and 19-year-olds) are on the electoral rolls/registration out of the total projected 4.9 crore new voters in this age group.

Indians witnessing 'regression to Hindutva politics' under Modi ahead of elections

By Bhabani Shankar Nayak*  The forthcoming general election in India, scheduled from April 19, 2024, to June 1, 2024, to elect the 543 members of the 18th Lok Sabha and the new Government of India, carries immense significance for the preservation of India's identity as a liberal, secular, and constitutional democracy.

Anti-Rupala Rajputs 'have no support' of numerically strong Kshatriya communities

By Rajiv Shah  Personally, I have no love lost for Purshottam Rupala, though I have known him ever since I was posted as the Times of India representative in Gandhinagar in 1997, from where I was supposed to do political reporting. In news after he made the statement that 'maharajas' succumbed to foreign rulers, including the British, and even married off their daughters them, there have been large Rajput rallies against him for “insulting” the community.