Skip to main content

Adanis' decision to self-fund Aussie project is "no guarantee" the mine will go ahead

By Samantha Hepburn*
Indian mining multinational Adani has announced that it will self-fund a significantly smaller coal mine in the Galilee Basin, after failing to secure finance from more than 30 domestic and international banks and lenders. Federal Resources Minister Matt Canavan has described Adani as a “little Aussie battler” and praised the newly scaled-down project’s purported regional economic benefits.
The scaling down of the project has been extensive. Adani Mining chief executive Lucas Dow said the mine will cost A$2 billion and initially produce up to 15 million tonnes of thermal coal per year, with plans to ramp production up to 27.5 million tonnes per year.
That is far more modest than the A$16.5 billion investment in digging up 60 million tonnes of coal a year which the company first announced in 2010. The original plan was to transport the coal along a new 388km rail line to a specially built terminal at Adani’s Abbot Point coal port, for export to India. Under the scaled-down version of the project, Adani will need to secure access to existing rail infrastructure.
But there is still no guarantee that the mine will necessarily go ahead. Opening a new coal mine – even one with a relatively modest A$2 billion price tag – is socially and environmentally irresponsible, given the urgency with which the Intergovernmental Panel on Climate Change says we need to reduce global greenhouse emissions, the fact that Australia is not currently on track to meet its own emissions targets, and of course the fact that 2018 is on course to become the fourth-hottest year on record.
The economics barely stack up either. A recent IEEFA report indicated that coal is facing a terminal decline as Asian markets make the transition to cheaper and more efficient renewable alternatives. Existing thermal coal power in India costs US$60-80 per megawatt-hour, roughly double the cost of new renewable generation. The Mundra coal plant, where much of the Adani coal was destined, is already operating under capacity and has been closed for significant periods.
Adani has decided not to proceed with its initially planned 388km rail link, and will instead aim to use the existing Aurizon rail infrastructure. However, there is a 200km gap in this link which will cost a significant amount to bridge – albeit almost certainly much less than the A$2.3 billion cost of the originally planned railway. Aurizon Network is legally obliged to consider Adani’s access application, but has not yet assessed and approved it.

Environmental and Indigenous issues

Then there are the existing and significant concerns regarding Adani’s environmental management of issues such as water contamination in the Caley Valley Wetlands near the Abbot Point terminal. These will not disappear just because the project has been revised.
Gaining the consent of Traditional Owners will also be crucial, yet the 12-member native title representation group is split down the middle. Adani’s existing Indigenous Land Use Agreement has been appealed in the High Court by the Wangan and Jagalingou people, on the basis that the group has not genuinely consented to the agreement, and that overriding native title to make way for a coalmine is socially and culturally regressive. 
If the court does not uphold the agreement, this would create profound difficulties for the project as they may not be able to proceed with the development of the coal mine to the extent that it interferes with Indigenous landholdings.
So, while the decision of Adani to self-fund a scaled-down coalmine in Queensland might indicate determination, it also suggests a resistance to, and misunderstanding of, a rapidly changing energy sector and the broader social and environmental responsibilities that this change necessitates.
---
*Director of the Centre for Energy and Natural Resources Law, Deakin Law School, Deakin University, Australia. This article first appeared in The Conversation

Comments

TRENDING

Golwalkar's views on tricolour, martyrs, minorities, caste as per RSS archives

By Shamsul Islam*  First time in the history of independent India, the in-charge minister of the Cultural Ministry in the current Modi government, Prahlad Singh Patel, has glorified MS Golwalkar, second supremo of the RSS and the most prominent ideologue of the RSS till date, on his birth anniversary, February 19. In a tweet he wrote : “Remembering a great thinker, scholar, and remarkable leader #MSGolwalkar on his birth anniversary. His thoughts will remain a source of inspiration & continue to guide generations.”

Kailash Satyarthi NGO makes slum kids laud RSS founder Hedgewar as freedom fighter

By Rajiv Shah  In a move which may raise many an eyebrow, a Nobel laureate Kailash Satyarthi-supported child rights NGO has celebrated Prime Minister Narendra Modi-intitiated Har Ghar Tiranga by commemorating 75 freedom fighters by "narrating their famous deeds and chanting slogans of each leader", including Mahatma Gandhi, Jawaharlal Nehru, Subhas Chandra Bose, Lala Lajpat Rai and a person who had little or nothing common with the freedom movement -- RSS founder Keshav Baliram Hedgewar. A communique from the Kailash Satyarthi Childrens Foundation (KSCF), which organised the event, said among the freedom fighters celebrated by 75 children on the occasion of 75 years of India's independence placing photographs of each freedom fighter included that of Hedgewar, who is alleged to have maintained a distance from Indian Independence movement led by Gandhiji. According to Hedgewar's biography, when Gandhiji launched the Salt Satyagraha in 1930, Hedgewar sent information ev

Savarkar 'criminally betrayed' Netaji and his INA by siding with the British rulers

By Shamsul Islam* RSS-BJP rulers of India have been trying to show off as great fans of Netaji. But Indians must know what role ideological parents of today's RSS/BJP played against Netaji and Indian National Army (INA). The Hindu Mahasabha and RSS which always had prominent lawyers on their rolls made no attempt to defend the INA accused at Red Fort trials.

Savarkar in Ahmedabad 'declared' two-nation theory in 1937, Jinnah followed 3 years later

By Our Representative One of the top freedom fighters whom BJP and Prime Minister Narendra Modi revere the most, Vinayak Damodar Savarkar, was also a great supporter of the two nation theory for India, one for Hindus another for Muslims, claims a new expose on the man who is also known to be the original proponent of the concept of Hindutva.

Unlike other revolutionaries, Hindutva icon wrote 5 mercy petitions to British masters

By Shamsul Islam*  The Hindutva icon VD Savarkar of the RSS-BJP rulers of India submitted not one, two,or three but five mercy petitions to the British masters! Savarkarites argue: “There are no evidences to prove that Savarkar collaborated with the British for his release from jail. In fact, his appeal for release was a ruse. He was well aware of the political developments outside and wanted to be part of it. So he kept requesting for his release. But the British authorities did not trust him a bit” (YD Phadke, ‘A complex Hero’, "The Indian Expres"s, August 31, 2004)

Gujarat's 'low-key' communalism: right-wing groups compete for anti-Muslim space

By Rajiv Shah  Noticing the emergence of a novel trend, a just-released report based on a fact-finding team's observations following its interaction in particular with Hindu and Muslim political activists, administrators and police officials, has claimed that a major reason why chasm between the two communities in Gujarat has lately reached new heights is, a veritable competition between Hindu right-wing groups and leaders to capture the existing communal space. Titled "Hindu Right, Communal Riots and Demolitions: Emerging Pattern of Communal Riots in India", the report has been prepared against the backdrop of what it calls "low intensity" communalism which has characterised rioting in Gujarat in the recent past, especially after the 2002 communal carnage, one of the worst in Independent India. Especially focusing on riots in two Gujarat towns, Himmatnagar and Khambhat, which took place on April 10, the day clashes broke also out in different parts of India on

Why global recession is 'big threat' to India, despite Nirmala Sitharaman’s bravado

By Prasanna Mohanty*  It would be imprudent to assume that a global recessionary trend will bypass India. In fact, a day after Finance Minister Nirmala Sitharaman categorically ruled out the possibility of recession and stagflation (with high unemployment and high inflation India is technically witnessing stagflation) hitting India in her responses to the Parliament earlier in the week, Commerce Secretary BVR Subrahmanyam dropped a bomb shell. He released latest trade data showing fast deteriorating trends. The data showed, in July 2022, exports fell to five-month low of $35.2 billion and imports sequentially increased to $66 billion. The details revealed a fall in seven of top 10 export items: engineering goods, petroleum products, gems and jewellery, pharmaceuticals, readymade garments, cotton yarn and plastics. All this happened, Subrahmanyam acknowledged, due to the growing recessionary trends in developed countries and elevated commodity prices. The trade deficit (merchandise g

RSS, Sangh Parivar consider tricolour as "state flag" and not "national flag"

By Teesta Setalvad* Today, when the nation has been independent for 67 years, the Sangh Parivar is set to launch ‘Tiranga yatras’ and Satyagrahas to defend the honour of the flag and the nation. Yet when the Indian people were involved in the decades-long struggle for freedom against British imperialism, the RSS was conspicuous by its absence in the struggle. When thousands of people faced lathis, bullets and jail sentences for hoisting the tiranga and participated all over the country in satyagraha during the Civil Disobedience and Quit India movements against the British Raj, the Sangh publicly took the stand that it would not take part in the movement and seldom missed the opportunity of assuring the British rulers that they would keep to the right side of colonial law and avoid any clash with the authorities. Of course the reason given for this was that the Sangh was secretly strengthening itself and would take on British imperialism only when it was strong enough to do so! A simil

Bangladeshi women crossing borders: Demand to sensitise cops, BSF personnel

Counterview Desk  Bringing more instances of how the security personnel along the borders in West Bengal refuse to probe the human trafficking angle while arresting Bangladeshi women, human rights leader Kirity Roy has said, they are treated as accused in violation of the memorandum of understanding (MoU) between the Government of India and the Government of Bangladesh on Bilateral Cooperation for Preventing of Human Trafficking, especially trafficking in Women and Children. In a letter to the chairman, National Human Rights Commission (NHRC), Roy, secretary, Banglar Manabadhikar Suraksha Mancha (MASUM), and national convenor, Programme Against Custodial Torture & Impunity (PACTI), Hooghly, said, “The victims should be immediately repatriated to their own country and the criminal charges against them must be withdrawn at the earliest”, insisting, “The matters must be handled by the police or the BSF personnel with a human approach.” Text: I am writing this complaint regarding det

Need to ask at today's 'critical juncture' of India's history: Whose Freedom@75?

By Fr Cedric Prakash SJ*  The official propaganda states that: “Azadi Ka Amrit Mahotsav is an initiative of the Government of India to celebrate and commemorate 75 years of independence and the glorious history of it's people, culture and achievements. This Mahotsav is dedicated to the people of India who have not only been instrumental in bringing India thus far in its evolutionary journey but also hold within them the power and potential to enable Prime Minister Narendra Modi's vision of activating India 2.0, fuelled by the spirit of Aatmanirbhar Bharat. The official journey of Azadi Ka Amrit Mahotsav commenced on 12th March 2021 which started a 75-week countdown to our 75th anniversary of independence and will end post a year on 15th August 2023.” So as India completes a landmark seventy-five years of freedom – a platinum jubilee – the only question one needs to ask at this critical juncture of the country’s history is “whose freedom@75?” Since March 2020, it has been a di