PERTH (miningweekly.com) – Environmental groups have labelled the $16.5-billion Carmichael coal and rail project a “disaster” for local communities and have dismissed Indian developer Adani’s development decision as an “empty public relations (PR) stunt”.
Adani on Tuesday announced a positive final investment decision (FID) for the proposed 60-million-tonne-a-year coal mine, to be based in Queensland, with Adani chairperson Gautam Adani saying it would be the largest single investment by an Indian corporation in Australia.
However, Greenpeace Australia pointed out that Adani was yet to confirm financing for the project, or if a proposed A$1-billion loan from the Northern Australian Infrastructure Facility (NAIF) to fund the rail line between the Carmichael mine and the Abbot Point coal terminal, had been granted.
“This mine will be a disaster for the climate, the Great Barrier Reef and frontline communities in Queensland and around the world,” Greenpeace climate and energy campaigner Nikola Casule said.
“This toxic megamine is deeply unpopular with the Australian people and is not viable without massive handouts of public money through subsidies or loans from the NAIF and Queensland government.
“Any public assistance to the mine is a betrayal of the Australian public and the things they hold dear, like a healthy Reef and support for public services that lose out when billions of dollars are given to Adani instead of to schools and hospitals.”
Greenpeace has called for both state and federal governments to rule out any public funds for the proposed mine.
The Australian Greens party has also labelled Adani’s FID as a “PR stunt”, saying it was simply a “grab for public funds”.
“This so-called FID is meaningless, Adani is still broke, and 19 banks have refused to fund their deadly megacoal mine,” Greens deputy leader and Queensland Senator Larissa Waters said.
She added that the Adani announcement did not mean that the project would go ahead, but rather it was a grab for a A$1-billion handout from public funds from the NAIF.
However, Federal Resources and Northern Australia Minister Matt Canavan said on Wednesday that any funding from NAIF would be a loan only, and would need to be repaid.
Speaking on the sidelines of the Association of Mining and Exploration Companies (Amec) convention, Canavan said that Adani’s application to the NAIF for funding would be evaluated by an independent board, and would have to prove its merits.
“The NAIF funds are just a loan that has to be repaid, and in that respect, we are anticipating that it needs to be an investment that makes a return, not just for the commonwealth, but also in terms of economic activity and employment in Australia.”
As far as funding for the project is concerned, Canavan said that in his discussions with Adani, the company had expressed its hope to have project funding secured by December this year.
In the meantime, Adani is putting forth its own funds to start building an airport to service the mine site, as well as a work camp and will start work on the rail project.