Skip to main content

Adanis "offered" $320 million royalties holiday for Australian coalmining project, as expert says it is "not viable"

Queensland premier with chairman Gautam Adani
By Our Representative
In a major boon to India’s powerful industrial group, the Adanis have been offered a $320 million “royalties holiday” in their prestigious coalmining project in Australia. The offer, reports Australian Broadcasting Corporation (ABC), requires the Adanis to pay “just $2 million a year in royalties once the $21 billion project starts operating.”
Pointing out that “the royalty rate will then increase after several years”, quoting sources, ABC said, “Under the proposed agreement, the state would lose out on a total of $320 million in royalties”. The offer has come following Queensland state premier Annastacia Palaszczuk’s negotiations with Adanis over the proposed royalties holiday.
Following the negotiations, the report quotes Palaszczuk as saying, "What we know about this project is that it is vital for regional jobs." The Carmichael project is expected to produce 25 million tonnes of coal a year in its first phase.
In a separate report, the British Guardian reports, it is a “$320m deferment of Carmichael coal export royalties”, adding, the Queensland government offer comes after “a former climate change adviser to the federal government said risks inherent in Australia’s largest proposed coalmine meant Adani could shelve its plans.”
The Guardian quotes Prof Will Steffen’s Climate Council report to say that a “carbon budget” approach to a global warming limit of 2C rules out Carmichael coalmine.
“As a catalyst for opening up neighbouring mines, it could lead to total emissions from Galilee basin coal matching ‘one of the top 15 emitting countries in the world’ and making up 130% of Australia’s total carbon pollution.”, the report adds.
Quoting from the report, the Guardian says, “The carbon budget for 2C allows for less than 10% of existing Australian coal reserves to be dug up, leaving ‘no basis for developing any potential new coalmines, no matter where they are or what size they are’. This takes into account the ‘most economical’ existing sources of coal worldwide.”
“There are two undeniable trends – an accelerating uptake of renewable energy and coal plant closures,” the report is further quoted as saying. “For Australia to fight these trends is economically, socially and environmentally unwise and counterproductive.”
Steffen said his key observation from the report was that rising impacts at “modest temperature rises” – such as bleaching of the Great Barrier Reef – along with more extreme events and warming of 1.1C-1.2C already “really put the pressure on getting out of fossil fuels probably faster than most people have thought”.
Coal, which gives out “a lot more CO2 per unit of energy” than oil or gas, comes out as “the biggest loser” under a carbon budget, Steffen said, adding, “Basically, the story is we can still burn over half the conventional oil reserves, less than half the conventional gas reserves, but very little of the coal reserves, because coal emits a lot more CO2 per unit of energy.”
“The real question is how fast can we phase out our existing mines and existing power stations before their normal lifetime is up. How do we hasten the transition? So any talk of opening up a vast new area of coal is completely out of whack with what we know about what’s happening with the climate systems”, he added.

Comments

TRENDING

World Bank clarifies: Its 26th rank to India not for universal access to power but for ease of doing business

By Our Representative
In a major embarrassment to the Government of India, the World Bank has reportedly clarified that it has not ranked India 26th out of 130 countries for providing power to its population. The top international banker’s clarification comes following Union Power Minister Piyush Goyal’s claim that India has “improved to 26 position from 99” in access to electricity in just one year.

Mental health: India's 95% patients "deprived" of medical care, treatment gap 70%

By Moin Qazi*
Among the many challenges India faces, the most underappreciated is the ongoing mental health crisis. Mental illness is actually India’s ticking bomb. An estimated 56 million Indians suffer from depression, and 38 million from anxiety disorders. For those who suffer from mental illness, life can seem like a terrible prison from which there is no hope of escape; they are left forlorn and abandoned, stigmatized, shunned and misunderstood.

Modi model? "Refusal" to build Narmada's micro canals, keep Kutch dry; help industry

By Medha Patkar*
This is the latest photograph of the Kutch Branch Canal (KBC) of the Sardar Sarovar, as of April 8! What does it show, expose, and what memories do you recall? Is it dry or dead? Is it a canal or a carcass of the same?

Bill Gates "promoting" GMO, Bt cotton, like cartels that have roots in Hitler's Germany

By Our Representative
World-renowned environmental leader and ecologist Dr Vandana Shiva has expressed concern that Bill Gates, founder of Microsoft Corporation, has joined the bandwagon of “a poison cartel of three" – Monsanto and Bayer, Syngenta and ChemChina, Dow and DuPont – all of whom allegedly have “roots in Hitler’s Germany and finding chemicals to kill people”.

Indian talc products contain "contaminated" asbestos structures, can cause cancer: Study

Counterview Desk
A recent study, using polarizing light microscopy, transmission electron microscopy (TEM), electron diffraction, and X-ray analysis on multiple over-the-counter Indian talc products for the presence of asbestos, has concluded that large quantities of body talc products are likely to pose a public health risk for asbestos-related diseases, especially for the cancers related to asbestos exposure.

Why are you silent on discrimination against Dalit jawans? Macwan questions Modi

By Rajiv Shah
Close on the heels of releasing his book in Gujarati, "Bhed Bharat", which lists 319 cases of atrocities against Dalits and Adivasis across the country over the last five years, well-known Gujarat Dalit rights leader Martin Macwan has shot an open letter to Prime Minister Narendra Modi, telling him the reasons why he does not want vote for the BJP.

Jharkhand Adivasi lynched to death by mob "chanting" Jai Shri Ram: Fact-finding team

Counterview Desk
On April 10, 2019, Prakash Lakda, a 50-year old Adivasi of Jurmu village of Gumla’s Dumri block, was lynched to death by a mob of men from the Sahu community of neighbouring Jairagi village. Three other victims from Jurmu – Peter Kerketta, Belarius Minj and Janerius Minj – sustained severe injuries due to the beating by the mob. A fact-finding team of Jharkhand Janadhikar Mahasabha (JJM), comprising of several activists and representatives of member organisations, conducted a fact-finding inquiry into the incident on April 14-15.

Investigation shows Narmada downstream "seriously" polluted. Reason: apathy, greed

By Rohit Prajapati, Krishnakant, Swati Desai*
Our investigation regarding quality of water flowing in the Narmada river downstream of the Sardar Sarovar Dam (SSD), dated April 6, 2019, between 11.00 a.m. to 4.00 p.m. reiterates, what is commonly known now, that the Sardar Sarovar Project (SSP) is planned without considering its impact on the downstream Narmada River stretch of 161 kilometres, its ecology, biodiversity and fishery, and lakhs of people living close to and dependent on the river directly or indirectly. This, in turn, has led to its present disastrous state.

Emergence of a rare Dalit teacher in IIT-Kanpur "disturbed" certain faculty members

By PS Krishnan, IAS (Retd)*
Dr Subrahmanyam Sadrela, a faculty member in the Department of Aerospace Engineering, Indian Institute of Technology (IIT)-Kanpur since January 1, 2018, and one of the rare Dalit members of the faculty in IIT group of institutions, is facing the threat of revocation of his PhD thesis, and thereby also jeopardizing his job and career.

RTE in remote areas? Govt of India "plans" to close down 2.4 lakh schools

By Srijita Majumder*
The Right to Education (RTE) Act, 2009, came into effect on April 1, 2010, for the first time made it obligatory on the part of the State to provide free and compulsory education to all children from 6-14 years of age in India. The Act, despite its limitations, had progressive elements like neighbourhood schools, community participation, ban on corporal punishment, no detention, continuous and comprehensive evaluation and it hence it appeared that India was not far from achieving universal elementary education.