The Adani Project in Queenslands Galilee Basin

Background

The Adani Project comprises of  mine, rail and port operations.  It will provide thousands of direct and indirect jobs and supply opportunities for local businesses.

  • The development represents a $16.5 billion investment.
  • The mine is expected to have an operating life of approximately 60 years.
  • In total the mine is expected to extract 4 billion tonnes of coal resource.
  • Exports are to leave the country via port facilities at Hay Point and Abbot Point ,which Adani owns and is currently expanding.
  • Coal will be transported to the coast via a new 189 kilometer railway line, to be built, which will connect with the existing Goonyella railway line.
  •  Adani plans to integrate its business interests: burning coal from its Australian mines in its Indian power stations, transported through its own ports.

The Carmichael coal mine is a proposed thermal coal mine in the north of the Galilee Basin in Central Queensland. It is expected to produce 60 million tonnes of coal a year and become the largest coal mine in Australia.

  • The mine is planned to contain six open-cut pits and five underground mines. 
  • Operations at the mine are expected to consume 12 billion litres of water each year. 
  • According to the mine’s environmental impact statement it will produce 200 million tonnes of carbon dioxide over the expected 60-year life of the mine. 
  • This includes gases produced during the mining process and from emissions created from the mining and transportation of the coal.
  • The burning of that coal has been estimated to produce another 130 m tonnes of carbon dioxide every year.

The mine has been staunchly opposed on environmental grounds. These are broadly described as potential impact upon the Great Barrier Reef, groundwater at its site and carbon emissions.

Now your turn…

Here are various articles for you to read.  You be the judge.

Does the purported economic benefit to Queensland outweigh the environmental impact?

Are you happy doing business with Adani?  

Would you like to be living in the areas this ‘project’ will impact?

Adani – The Project. Adani Australia is building significant rail, port and mine infrastructure in the Galilee Basin region of Queensland. The three projects will provide over 10,000 jobs and contribute to $22 billion in taxes and royalties for investment into services.

Green Institute August 2013 – Galilee Basin coal mining and the Great Barrier Reef ‐‐ time for a public inquiry.  Coal mines and related infrastructure proposed for Queensland’s Galilee Basin and Great
Barrier Reef region should be comprehensively assessed through a public inquiry under the Environment Protection and Biodiversity Conservation Act.

Greenpeace 10 March 2014 – Research Briefing.  Adani’s record of environmental destruction and non-compliance with regulations. Adani, an Indian resources, logistics and energy company with big expansion plans was founded by Indian billionaire, Gautam Adani, in 1988. It has coal mining interests in India, Indonesia and Australia and plans to feed the coal from these into a series of massive coal power stations in India.

Lock The Gate 31 March 2014 – Carving up food lands for coal transport in Central Queensland.  TODAY Lock the Gate Alliance released a new report that reveals a Queensland Government proposal to declare a State Development Area (GBSDA) across 2 million hectares in Central Queensland, to facilitate coal rail developments, would lead to major flooding and significant loss of food-producing land.

Market Forces 30 April 2014 – Adani given “Stranded Asset” award for 3rd most unburnable coal.  If the world is to stand an 80% chance of keeping global warming to less than 2˚C, then four fifths of the owned fossil fuel reserves cannot be burned. Companies with large amounts of fossil fuels on their books have a massive financial liability on their hands as the world moves to minimise greenhouse gas emissions.

The Guardian 28 July 2014 – Largest coal mine in Australia: federal government gives Carmichael go-ahead. The Australian environment minister, Greg Hunt, has approved a $16.5bn resources project that will lead to the creation of the largest coal mine in Australia, and one of the largest in the world.

Australian Mining 29 July 2014 – Carmichael coal mine means more jobs, less water for Queensland. The mine will use approximately 12 billion litres of water each year, as estimated in a report by the Independent Expert Scientific Committee on Coal Seam gas and Large Mining Developments, a report which was ignored by both Adani and the Queensland state government. Minister Hunt has said the mine must return 730 megalitres of water to the Great Artesian Basin each year for five years, an amount that is equivalent to only 6 per cent of the independently estimated usage.

Australian Resources July 2014 – Adani and POSCO E&C to build rail line for multibillion coal project. India’s Adani Mining Pty Ltd and South Korea’s POSCO E&C have signed a binding agreement to develop a greenfield rail line for a long-delayed A$16.5 billion ($15 billion) coal and rail project in Australia.

The Age 4 September 2014 – Is Australia ready for India’s Gautam Adani? The 52-year-old  Adani is a self-made, first generation multi-billionaire in India.  Owner of India’s biggest private port located on the west coast of Gujarat, Adani’s business interests span across coal  mining, construction, education, power plants and resources and logistics management.

Environmental Justice Australia 27 January 2015 – A review of the Adani group’s environmental history in the context of the Carmichael coal mine approval.  A new investigation by Environmental Justice Australia reveals that the Newman Government, in its rush to fast track Adani Mining’s application to operate the Carmichael mine, has overlooked Adani’s track record and failed to require Adani to respond to crucial issues about its environmental and legal record.

The Guardian 3 February 2015 – Why was Newman handing out billions to an Indian coal mining company that didn’t need it?  The Newman government was handing an Indian billionaire billions of dollars of taxpayer money for literally – literally – no reason.  During the recent state election, both the LNP and Labor in Queensland broadly supported the Carmichael coal project by Indian mining giant Adani. The key difference was whether they were expecting the taxpayer to support it as well.

350.org Australia 7 February 2015 – 350.org calls for moratorium on Abbot Point coal port expansion in light of “Adani-gate” findings.  350.org believes the approval process must be halted following ground-breaking new information uncovered by Fairfax this morning, which reveals that most of the companies associated with Adani’s Australian coal operations are not controlled by the public face of the company, Gautam Adani, but by his eldest brother Vinod. According to the Fairfax story, Vinod has been named in a criminal investigation into the alleged siphoning of $1 billion from Indian shareholders in three unknown Adani companies into offshore accounts in tax havens.

ABC News 17 March 2015 – Galilee Basin: Who wants to capitalise on last undeveloped coal resource in Queensland?  According to the Department of State Development, Infrastructure and Planning, proposed mining projects within the basin have the potential to attract investment of more than $28 billion and could provide 15,000 jobs during construction and more than 13,000 operational jobs.

Financial Review 10 April 2015 – Adani, the new coal Tar Baby. Adani’s troubled reality is that the Carmichael project is received by the anti-coal lobby as a critical contest in its world war on coal. That is the mission here: Stop coal. The strategy is to prevent new mines being built and then make sustaining old ones ever harder. And the tactic, in this case, is to emphasise Carmichael’s potential to damage our living world heritage icon, the Great Barrier Reef.

Brisbane Times 14 April 2015 – Opposition to Adani mine from Indigenous locals.  Mining giant Adani has been given the green light to take out mining leases for Australia’s biggest coal mine amid opposition from the local Indigenous people.  The National Native Title Tribunal (NNTT) determined earlier this month to allow contentious mining leases for Adani’s Carmichael Coal Mine and Rail Project in Queensland’s Galilee Basin.

Courier Mail 17 April 2015 – Adani boss says Carmichael megamine a test case for more large-scale Indian investment.  We know we are going to take a lot of upfront costs. We genuinely believe this is a test case for more investment from India of this scale. If we do it right a lot of players will benefit and Australia will benefit because more players will come in.

350.org Australia 20 April 2015 – State Bank of India shelves $1 billion financing agreement for Adani’s Galilee Basin coal mine.  After months of speculation, the State Bank of India (SBI) has shelved the $1 billion loan it agreed to five months ago to help finance mining giant Adani’s plan to develop the Carmichael mega coal mine in Queensland’s Galilee Basin. This is the 12th global investment bank to publicly walk away from the proposal in recent months.

Brisbane Times 28 April 2015 – Adani Carmichael mine to create 1464 jobs, not 10,000.  Environmental organisation Coast and Country seized on revelations in court on Monday the Carmichael mega-mine in the Galilee Basin would create an average of 1464 jobs per year, not the 10,000 jobs figure more commonly associated with the project.

Sydney Morning Herald 28 April 2015 – Adani Mining feels heat over $14b Galilee Basin coal mine gap. Can you trust a company to run a clean and profitable coal mine when its financial controller has a case of the vagues?  The Indian conglomerate is facing a challenge from a conservation group in the Land Court of Queensland to stop it proceeding with its $10 billion Galilee Basin thermal coal mine and infrastructure project. Taking the stand on Friday was Adani Mining’s financial controller Rajesh Gupta whose performance when cross-examined ranged from unconvincing to embarrassingly vague and forgetful.

Queensland Conservation April 2015 – Where is the government’s due diligence for Adani’s proposed coal mine? The government is aware of Adani’s track record in relation to environmental destruction; they are aware that leases and other important environmental approvals have not been made; they are aware that the coal industry is dying; they are aware of the impacts of climate change from burning all the coal that is proposed to come out of the Carmichael mine; but they still seem to happily support it.

Business Spectator – 5 May 2015 – Adani rejects funding concerns.  Indian mining giant Adani says a proposed Queensland mega-mine will help fuel a rapidly expanding overseas coal market as a new report labels it financially unviable.

ABC News 5 May 2015 – Adani rejects claims restructure means it can’t pay for Queensland coal project.  Indian miner Adani has rejected suggestions by the Institute for Energy Economics and Financial Analysis (IEEFA), that the restructure of the business has made its massive coal project in Queensland’s Galilee Basin unviable.

New Matilda 11 May 2015 – The Trial and Tribulations of Adani Mining: Four Of Their Shakiest Claims. It’s been a tough five weeks for Big Coal. Thom Mitchell reviews Adani’s recent court case, and highlights some of the most damaging evidence.

Environmental Defenders Office Queensland 14 May 2015 – LATEST ON THE CASE: Adani Carmichael coal mine objection.  We have already exposed that Adani grossly exaggerates the number of jobs and royalties to benefit Queensland and made it clear that economic claims by the mining industry should be treated with the greatest skepticism. Further, this case shows the importance of public objection rights for all mining proposals.

The Guardian 14 May 2015 – Adani’s Carmichael mine: damage far outweighs benefits, lawyer claims.  Lawyers fighting to have Queensland’s land court stop the construction of Australia’s largest coal mine say they have made the touted economic benefits look “ridiculous” beside the risk of environmental damage.

Financial Review 22 May 2015 – Adani sets a Carmichael date.  Australia’s Indian coal adventurer, Adani Group, has inked a September start date to begin off-site work on its controversial $US16 billion Carmichael coal mine project.

The Logical Indian – 23 May 2015 – The Video That Adani Doesn’t Want Us To See. When Adani built a coal port and power plant in Mundra, India, the damage was astonishing. It destroyed the environment that had sustained local fishing and farming businesses for generations.

Daily Mercury 26 May 2015 – No option except 100% FIFO, Adani CEO says. Before speaking to industry leaders in Mackay, Adani chief executive officer Jeyakumar Janakaraj spoke exclusively to the Daily Mercury about the proposed Carmichael coal mine.

Australian Mining 28 May 2015 – Adani corrects record about 100 per cent FIFO. Articles published expressing views that Adani CEO Jeyakumar Janakaraj said the Carmichael coal mine would have a 100 per cent FIFO workforce have sparked controversy with claims of inaccuracy.

Daily Mercury 28 May 2015 – FIFO debate sparked online.  An exclusive interview with Adani chief executive officer Jeyakumar Janakaraj shocked the Mackay community.The interview was published in the Daily Mercury on page four Tuesday.  But Mr Janakaraj claimed he was misquoted and requested a clarification.  The interview was recorded so we have now published the transcript of the FIFO line of questioning.

RE New Economy 28 May 2015 – Tide turns on fossil fuels as Norway quits coal, ANZ goes green.  ANZ is the second Australian bank to tap into so-called “green bonds”, which are focused on “climate-smart” low-carbon investments. At a time when all four major Australian banks are under pressure not to finance “carbon bombs” such as the Galilee Basin coal projects, it is an important development.

Courier Mail 31 May 2015 – Senator moves to punish Greenpeace for its international Great Barrier Reef campaign. Coalition Senator Matt Canavan yesterday moved for punitive action to be taken against Greenpeace over its Reef campaign in which it sought to have the World Heritage area listed by UNESCO as “in danger”.

Wangan and Jagalingou Family Council – STOP ADANI DESTROYING OUR LAND AND CULTURE. (Petition)  If the Carmichael mine were to proceed it would tear the heart out of the land. The scale of this mine means it would have devastating impacts on our native title, ancestral lands and waters, our totemic plants and animals, and our environmental and cultural heritage. It would pollute and drain billions of litres of groundwater, and obliterate important springs systems. It would potentially wipe out threatened and endangered species. It would literally leave a huge black hole, monumental in proportions, where there were once our homelands. These effects are irreversible. Our land will be “disappeared

What is my conclusion from all these articles?

Thank heavens for environmentalists.  Without these wonderful people Queensland would fast become a wasteland.  The Bligh government sold us down the river and the Campbell Government pushed the beast ever further and faster.

Thanks to the narrow vision of the recent and current governments Queensland now risks becoming one of the largest coal exporting sites in the world.  At a time when the world is winding back it’s use of coal our country is marching full steam ahead in production.

Well the narrow mindedness of government(s) is now coming back to haunt them as the market price plunges and environmental issues become forefront in the political arena.

This mining project is being sold to us as good for the economy with all the jobs it will bring and the revenue the state will receive.  But this only occurs if the state supports the venture with rebates.

If the government supported renewables, which is now becoming commercially viable, with the same passion it supports mining the jobs would be created in that industry instead.  And Australia would be hailed as a leader in the world instead of a polluter.