Adani not giving up on Galilee Basin coal mine development
Back in the news once again are many conflicting stories about the Adani Carmichael mine development in the Galilee Basin.
To be politically correct, we must use the term ‘proposed’ thermal cola mine, because there has been some much controversy over the mine – what are we to believe?
In the news this week are a number of articles from major news sources in Australia that once again focus on the feasibility of the Galilee Basin project.
The Australian newspaper ran a story on how Adani refuses to simply walk away from its $16 billion Queensland coal project in the face of legal obstacles.
What Mr.Adani wants to see is the Australian federal government to make it a lot clearer about what the entire approvals process is made up of. To get a better understanding of how it all works will allow Adani to make further decisions about the future of the mine.
Bearing in mind of course that the Adani corporation has sunk billions of dollars already into the project – as well as awarding contracts for just about every stage of the Carmichael mine development.
Recent news stories are purporting that environmental groups think they can keep the Carmichael mine approval wrapped up in litigation, strangling the project for the next couple of years.
It’s been also reported that an Adani spokesman confirmed the company is ready to continue with its plans to develop its Queensland coal assets, citing the need once again for certainty and clarity because to date the approval process has lagged for around 5 years.
India’s internal problems fuel Adani’s resolve
Although the majority of objectors and green groups in Australia have hinted that Adani will walk away with its tail between its legs, India`s largest private power generator is counting on the coal from the proposed Carmichael mine to power its massive new power stations that were designed to be fed with high-quality thermal coal from Queensland.
There’s been great debate about the quality of coal that India already has – in fact India has a large domestic coal industry, although it is fraught with corruption and logistical nightmares. Due to these issues and the fact that the India coal rail network is old and overcrowded, more expensive and less reliable≠ than shipments of seaborne coal from Australia.
Coal from Queensland would be used to generate electricity for the millions of Indian’s who today still do not have access to electricity. This has created unrest and a political ‘hot potato’ for India’s government and Prime Minister Narendra Modi, who has promised to once again establish India as a global powerhouse both in terms of it’s culture as well as its manufacturing sector.
India needs Queensland coal – and lots of it
To achieve this, they need coal – and lots of it, hence the reason why their tenacity remains today.
While critics of the Carmichael mine project in the Queensland Galilee Basin have argued it would not be economic, coal prices for power generation have remained stable since the middle of 2015.
Tony Abbott came out accusing green groups of availing themselves of the Australian court system to sabotage the Carmichael mine development, and said his government would take steps to legislate to remove their ability to take legal action because they were not directly involved in the development.
Hot on the heels of Tony Abbot, Trade Minister Andrew Robb said the moves against making the Adani mine a reality were negatively affecting Australia and created a perception that signals to potential investors that Australia is closed for business.