Showing posts with label Adani Group. Show all posts
Showing posts with label Adani Group. Show all posts

Friday, 22 December 2017

Adani circles the wagons in Queensland


@AnnastaciaMP exercising the Queensland Government's right of veto


Townsville Bulletin, 18 December 2017:

ADANI has announced it will part ways with its main contractor for its Carmichael megamine.

The Indian mining giant released a statement this morning heralding the change, which comes after Downer pulled information on Adani recruitment events from its website.

Downer was set to develop and operate the mine, but Adani will instead run the mine as an owner-operator.

“Following on from the NAIF veto last week, and in line with its vision to achieve the lowest quartile cost of production by ensuring flexibility and efficiencies in the supply chain, Adani has decided to develop and operate the mine on an owner operator basis,” it read.

“Adani and Downer have mutually agreed to cancel all Letter of Awards and Downer will provide transitional assistance until 31st March 2018.

“Adani remains committed to develop the Carmichael project and will ensure the highest level of standards and governance.

Map of section Galilee Basin, Qld


Wednesday, 13 December 2017

Tony Windsor on fighting the Santos pipeline


They were there in an attempt to survey a pipeline to convey coal seam gas from gas giant Santos’s proposed Narrabri gas field. As one landholder, David Chadwick, said: the pipeline was the “head of the snake” and if allowed to proceed would provide the infrastructure to convey the gas to Sydney or internationally and provide the political pressure to develop about 850 gas wells near Narrabri, with a view to hundreds more across the Liverpool Plains and associated areas.” [Tony Windsor, former  independent member for the federal seat of New England]

The Saturday Paper, 9-15 December 2017:

Last week I was working with my son Andrew on our farm 25 kilometres north of Coonamble when he received a message that there were trespassers on the neighbouring farm. A digital alert system had been put in place for such an event.

Within minutes, farm vehicles from all the neighbours converged on the scene. Others moved in on the trespassers from the eastern side and in a pincer movement the trespassers became trapped and unable to gain access to their vehicles.

By this time, about 100 agitated and concerned farmers, their employees and families were there to express their disgust at what had just occurred. The police had also arrived.
It was ascertained that these trespassers were not your everyday illegal pig hunters or bushwalkers. But they were no less illegal and in breach of the law.

These trespassers were eventually allowed to leave after the police took their details. They proceeded to another small town called Warren, more than 100 kilometres away, where they were observed acting strangely.

The next day, they were followed on the ground by vehicle and in the air by aircraft and again they invaded private lands without appropriate authority and were hunted off. They returned to Coonamble to complain to police about being harassed, and then they left the district.

The trespassers were dressed in new clothes, trying to look like ecological scientists but without any identification. They had a security officer with them.

The question is why? Why would these people climb over a gate to gain access to the property when on that gate was a sign warning about biosecurity, with the farmer’s mobile phone number on the sign? Why wasn’t contact made? Why were they behaving like this?

It has often been said there will be wars over water. In its own way, the scene I was watching was a skirmish in what has the potential to become a war and rewrite the politics of water, land use and energy in this country. It was also an insight into how threatened the farm community felt and demonstrated how it would be difficult to fight these farmers’ guerilla tactics. It was a warning they were serious players.

It also occurred to me that most people in our major cities would not necessarily understand why a small community would mobilise itself so quickly at an apparent breach of their rights.

This article is an attempt to explain some of the detail and policy clashes that will evolve over the coming year, on the Liverpool Plains, on the plain country west of the Pilliga, and around the Adani coalmine in Queensland.

Read the full article here.

Monday, 11 December 2017

Adani Group still cannot find financial backers for Galilee Basin mega coal mine


Indian multinational, the family-owned Adani Group, appears to have financed its Queensland mining venture with debt.

The book value of Adani Enterprises' Carmichael mine project was just under US$2.3bn by mid-2017. While latest report shows its debt has risen by almost US$400m to US$3.83bn.

This debt is further complicated by fraud allegations and investigations by the Indian Government.

The Guardian, 7 December 2017:

Adani’s operations in Australia appear to be hanging on by a thread, as activists prove effective at undermining the company’s chances of getting the finance it needs.

China seems to have ruled out funding for the mine, which means it’s not just Adani’s proposed Carmichael coalmine that is under threat, but also its existing Abbot Point coal terminal, which sits near Bowen, behind the Great Barrier Reef.

The campaign against the mine has been long. Environmentalists first tried to use Australia’s environmental laws to block it from going ahead, and then failing that, focused on pressuring financial institutions, first here, and then around the world.

The news that Beijing has left Adani out to dry comes as on-the-ground protests against construction of the mine pick up. Two Greens MPs, Jeremy Buckingham and Dawn Walker, have been arrested in Queensland for disrupting the company’s activities.

Is China’s move the end of the road for Adani’s mega coalmine in Australia, and will the Adani Group be left with billions of dollars in stranded assets?.........

While threats to reputational damage were not effective against Adani Group, since it is family-owned, the same was not true of Australian banks, which were targeted heavily by activists.
And one by one, each of the big four Australian banks ruled out financing the mine.

The first of the big four banks declared it would not lend to the project two years ago. NAB distanced itself from the mine in September 2015 and ANZ followed suit in December.
Then in April this year Westpac became the third of the big banks to rule out funding the project, drawing criticism from resources minister, Matthew Canavan, who said the bank had a conflict of interest because of its interest in other coal-producing regions, and called for a boycott of the bank.

Undeterred, and in the face of a large campaign by environmental groups, the Commonwealth bank followed suit in August this year.

By then Adani had seen the writing on the wall, and had shifted to seek finance from overseas institutions. It entered negotiations with the state-owned China Machinery Engineering Corporation (CMEC), which was thought to raise the potential of subsidised Chinese government loans.

The Australian government, which was seeking to give Adani its own subsidised loan, had supported the company’s efforts in China, according to a freedom of information request by the Australia Institute that reveals “several hundred pages” relating to formal representations to foreign financiers by the Department of Foreign Affairs and Trade…….

Friday, 8 December 2017

It should come as no surprise that the Adani Group is offering traditional owners compensation which is well below industry standard


We, the Wangan and Jagalingou people, are the Traditional Owners of the land in Queensland’s Galilee Basin. Corporate conglomerate, Adani, wants to use our ancestral lands for their Carmichael coal mine.
We do hereby firmly REJECT a Land Use Agreement with Adani for the Carmichael mine on our traditional lands.
We DO NOT consent to the Carmichael mine on our ancestral lands.
We DO NOT accept Adani’s “offers” to sign away our land and our rights and interests in it. We will not take their “shut up” money.
We will PROTECT and DEFEND our Country and our connection to it." [http://wanganjagalingou.com.au/our-fight/]

ABC News, 1 December 2017:

A hotly contested deal between Adani and traditional owners of its proposed Carmichael mine site in Queensland's Galilee Basin would deliver compensation "well below" what most big miners pay, according to a new analysis.

The Wangan and Jagalingou (W&J) people would only get 0.2 per cent of Adani's earnings from the mine, less than half the industry average, respected mining industry outfit Economics Consulting Services has found.

Its report, obtained by the ABC, was commissioned by six W&J representatives whose looming court challenge to the deal stands as the final legal hurdle to Adani's contentious mega-mine.

It found the W&J people would earn up to $145 million over 30 years, out of the project's estimated $77.4 billion in gross revenue, a share which was "well below industry benchmark standards".

The benchmarks for such deals usually ranged from 0.75 per cent to 0.35 per cent.

Only 11 per cent of the deal would come to the W&J people in cash, up to $17.4 million over 30 years, or about $2,300 a year per adult member of the clan.

Report author Murray Meaton, who was awarded an Order of Australia in 2014 for services to the mining industry, found the benefits to the W&J people would be "dramatically lower" if job promises for locals fell short as they did "in most jurisdictions and agreements".

To gain finance for the $21 billion project, Adani needs an Indigenous Land Use Agreement (ILUA) with the W&J people, or it must call on the Queensland Government to forcibly extinguish any native title claim over the mine site in the Galilee Basin…….

The Adani supporters in the W&J have argued the mine is inevitable and they need to seize the miner's offer to economically benefit their people, including some who live in Queensland's more disadvantaged communities.

However, the anti-Adani group object to the destruction of their ancestral lands and culture, and contest the legitimacy of the meeting that approved the Adani deal.

The dispute will go to trial in the federal court in Brisbane in March.

The case has pushed back Adani's deadline on clinching finance for the project, which remains in doubt.

Wangan and Jagalingou have been defending their country in court since at least 2008.

The Guardian, 3 December 2017:

Traditional owners opposed to the Adani Carmichael coalmine have filed an application for an injunction with the federal court to prevent the native title tribunal from signing off on an Indigenous land use agreement before the outcome of a court challenge.

The application was filed following a meeting of the W&J traditional owners council in Brisbane on Saturday, where the 120 attendees voted against the Ilua for the fourth time since it was proposed in 2012.

Echo NetDaily, 6 December 2017:

North Coast Greens MLC Dawn Walker and NSW Greens mining spokesperson Jeremy Buckingham were arrested yesterday by Queensland police after taking part in a blockade of the Adani Carmichael coal mine rail construction site at Belyando, 270km west of Bowen.

The MPs were arrested at 6:35am along with a dozen other climate activists and charged with trespass unlawfully on a place of business.

Ms Walker said, ‘It was a very important day for me, stopping work on the Adani mine and being arrested with climate activists who understand the importance of preventing this destructive project from going ahead,’ said Greens MP Dawn Walker.

‘I was proud to stand with traditional owners who have said ‘no means no’ to Adani, and made it clear they will not be surrendering their land and water to this coal corporation.

‘Although this mine is miles from anywhere, the eyes of all Australia are on it. We have travelled days to get here but believe many more will follow.

Sunday, 3 December 2017

Coal needs to be consigned to the scrap book says former executive director of the United Nations Framework Convention on Climate Change


These issues get reported in mainstream media but are falling on the deaf ears of monumentally ignorant Turnbull Government minsters, senator and MPs.

ABC News, 27 November 2017:

The woman who led the world to a global climate change agreement has a message for Australia: "You really do have to see that we are at the Kodak moment for coal."

Christiana Figueres, until last year the executive director of the United Nations Framework Convention on Climate Change, doesn't mean happy snaps for the family album.

Rather, the decimation of the once dominant photographic company Kodak by digital change — in the same way that coal-fired power is being eclipsed by renewable energy.

She hopes to see coal, like those sentimental moments in time captured in photographs, confined to history — with the world remembering the contribution the fossil fuel has made to human development, while recognising the need to retire it as a fuel source because of its contribution to global warming.

And, she says, it's happening.

"The fact is that we are already seeing the decline of coal, we are seeing more and more countries phasing out of coal," Ms Figueres, who is based in London, told the ABC.

"We just had 25 countries come together [at the latest international climate change talks] in Bonn to say that they are moving out of coal in the short term.

"That does not include Australia or India or China, but you can begin to see the trend…..

Which makes arguments that India needs the coal from Adani's planned mega-mine in North Queensland — and the Federal Government's determination to see the mine ahead — baffling to Ms Figueres.

The Government's Northern Australia Infrastructure Facility, or NAIF, is considering Adani's request for a subsidised loan of up to $1 billion to help it build a railway to connect the Carmichael mine in outback Queensland to the Abbot Point Coal Mine near Mackay, which Adani also owns.

By law, the NAIF is not permitted to make loans for projects that would damage Australia's international reputation.

Earlier this month, Ms Figueres wrote to the NAIF arguing that providing such a loan for a project that would significantly add to greenhouse gas emissions would do just that.

"I wrote to NAIF because I am very concerned about the fact that NAIF could still be considering giving a concessional loan to the Adani Group to allow them to extract profitably from the Carmichael coal mine and transport that coal all the way to the Abbot Point Coal Terminal," Ms Figueres said.

"First of all, it has huge environmental impacts. The more coal we burn, the further away we are going to be from the targets established in the Paris agreement [to keep atmospheric temperature rises well below 2 degrees above pre-industrial levels].

"But also, the more coal we burn around the world, independently of where it is going to be burned, the more negatively we are affecting public health.

"Now we have this issue of the Carmichael coal mine which, if it goes ahead, would frankly blow completely out of the water any emissions reductions that Australia has committed to.

Sunday, 22 October 2017

Castle Hill, Townsville carries the message "STOP ADANI"


A major heritage-listed landmark shows that not everyone in Townsville, Queensland, appears to be happy with becoming a mining FIFO dumping ground hub for the financially dubious multinational Adani Group ……

Castle Hill aka Cutheringa Mountain est elevation 264 metres
Image: Townsville Bulletin, 16 October 2016


Tuesday, 17 October 2017

This is how Nationals MP for Dawson is using your tax dollars


Almost every person is Australia pays some form of taxation, even if payment is confined to the Goods & Services Tax (GST).

These taxes can result in a little or a lot of dollars ending up in government coffers rather than finding a home in the household kitty .

So I’m sure readers in the Northern Rivers region where household incomes are on the lower end of the national scale will be really impressed with the fact that yet another Turnbull Government MP is spending taxpayer dollars on publicly attacking the Australian Broadcasting Commission – this time in defence of a foreign multinational of dubious repute.

I give you George Robert Christensen, former local government councillor, former journalist/newspaper editor and current Chair of the Joint Committee On Publications…….


5 OCTOBER 2017: I am publishing (in North Queensland newspapers) an open letter to the Head of Current Affairs at the ABC. Monday’s attack on jobs with a program called “Digging into Adani” demonstrated beyond doubt the national broadcaster is overly influenced by the extreme green movement. On behalf of North Queensland families desperate for jobs, I have demanded the ABC provide balance with another story focusing on the Townsville, Bowen and Mackay communities relying on the Carmichael Coal Project going ahead.

The program avoided facts, preferring the green movement’s stock-in-trade: allegations, accusations, and unsubstantiated claims. But no matter how many activists the ABC turns to for comment, repeating the same misinformation does not turn it into fact.

Monday’s episode relied almost exclusively on commentary from other journalists and green activists, including the Institute for Energy Economics and Financial Analysis, which is funded by big (green left) money from the United States, including the Rockefellers. Their stated mission is “to accelerate the transition to a diverse, sustainable and profitable energy economy and to reduce dependence on coal and other non-renewable energy resources”.

Even lightly scratching the surface of the experts and organisations reveals strong links with the green movement and funding from other activist organisations such as Greenpeace. The lack of credible sources and repetition of the same old allegations, many of which are demonstrably false, indicate a disregard for objectivity. Monday’s episode contained nothing new of any substance, just a continuation of the ABC’s sustained attack on Adani, whose Carmichael Coal Project, when complete, will represent only 17 per cent of Queensland’s coal production.

By allowing itself to become a mouthpiece for green extremists, the ABC has distanced itself from the regional audience, who fund the broadcaster with their taxes. Regional-based journalists continue to engage with their local community but they are increasingly at odds with the Sydney-centric national programs.  The national broadcaster still has an important role to play in regional and remote areas where options are limited. However, the Four Corners story is a clear example of capital city media elites talking amongst themselves and demonstrating a disdain for anyone outside their circle.

Thursday, 4 May 2017

How soon will Adani go broke in the Galilee Basin?


Reading the information set out below leads me to wonder how the Federal Government and Queensland Government will cope, both politically and economically, if the Adani Group's Carmichael Mine and Rail Project leads to a massive derelict mine site with its twenty-six Australian subsidiaries under administration or in receivership.


2013


The Adani Group is highly geared:
 Against an external market capitalisation of US$5.17bn, The Adani Group has an estimated US$12bn of net debt, a significant portion of which is US$-denominated with limited hedging.
Adani Power is of particular concern, being loss-making with net debt over 300% of its current market capitalisation.

2015


The project would require a massive and improbable infusion of debt, but a growing number of global banks key to most major coal-mining investments have eschewed it, mostly because of the risk it would pose to the Great Barrier Reef. (The 11 banks that have taken a public pass on the project include Deutsche Bank; HSBC; Royal Bank of Scotland; Barclays; Morgan Stanley; Citigroup; Goldman Sachs; JP Morgan Chase and most recently Societe Generale, BNP Paribas and Credit Agricole. In May 2015 Bank of America announced it would move to exit coal lending entirely.


With the Carmichael coal proposal commercially unviable at current or forecast thermal coal prices, the project is increasingly unbankable. Fifteen of the world's largest financial houses have either ceased working on this proposal or ruled out involvement, including both CBA and Standard Chartered, where advisory mandates have expired.

Continued momentum in technological developments underpins the scaled up commercial rollout of renewable energy and energy efficiency globally. As such, the strategic 'moment' for large-scale export-focused greenfields coal mines has passed.

2017


Shareholders and financiers of Adani Enterprises face substantial risks due to the company's continuing development of the controversy-plagued Carmichael coal project in the face of major adverse structural shifts in market conditions.

The proposed mine, in Australia's remote Galilee Basin, remains a high-cost, high-risk project that is reliant on substantial public subsidies for it to be remotely financially viable. Even with concessional loans, IEEFA analysis shows the project is likely to be cash flow negative for the majority of its operating life.

Shifts in Indian energy policy and pricing have materially increased the risk of Carmichael becoming a stranded asset. Legal challenges and community opposition to the project persist and are likely to escalate if the project moves to construction.

With a market capitalisation of just US$1.9bn and net debt of US$2.5bn, Adani Enterprises Ltd will struggle to contribute equity for this A$5bn project. The project risks over-extending the balance sheet of Adani Enterprises to an extreme degree, creating a high level of financial risk to both shareholders and potential financiers……

In the years since Adani purchased the lease for the Carmichael mine, Indian government energy policy has shifted radically. Energy Minister Piyush Goyal has stated repeatedly that it is government policy to cease thermal coal imports—a policy that brings into question the very point of the proposed mine…..

* The Institute for Energy Economics and Financial Analysis (IEEFA) conducts research and analyses on financial and economic issues related to energy and the environment. The Institute's mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.
The Institute for Energy Economics and Financial Analysis receives its funding from philanthropic organizations.  We gratefully acknowledge our funders, including the Rockefeller Family Fund,  Energy FoundationMertz-Gilmore FoundationMoxie FoundationWilliam and Flora Hewlett FoundationRockefeller Brothers FundGrowald Family FundFlora Family FundWallace Global Fund,  and V. Kann Rasmussen Foundation.

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The Hindu, 5 May 2016:

"PSU banks are owed about Rs 5 lakh crore by corporate houses and of this roughly Rs 1.4 lakh crore are owed by just five companies, which include Lanco, GVK, Suzlon Energy, Hindustan Construction Company and a certain company called the Adani Group and Adani Power," he said.

The amount owed by this group "called the Adani Group" both in terms of its long term and short term debt on Thursday is around Rs 72,000 crore, he added quoting reports.
"Yesterday it was mentioned that the entire amount that the farmers need to pay as crop loans is Rs 72,000 crore. The Adani Group itself owes to the banks Rs 72,000 crore," he said.

The Hindu, 8 May 2016:

The billionaire Gautam Adani's Adani group, with Rs 96,031 crore debt [est. AUD $1.9 billion], is under pressure to sell its stake in the Abbott Point coal mines, port and rail project. The Adani Group's debt stands at Rs. 72,000 crore [est. AUD $1.4 billion]. Last year, Standard Chartered bank had recalled loans amounting to $2.5 billion as part of its global policy of reducing exposure in emerging markets. Global lenders have backed out from funding the $10-billion coal mine development project. State Bank of India has also declined to offer a loan despite signing an MoU to fund the group with $1 billion. An Adani spokesperson declined to offer any comments on the issue.


S&P Global Ratings revised its outlook on Adani Ports and Special Economic Zone Ltd. (APSEZ) to negative from stable. 

ABC News, 22 December 2016:

The business behind the planned Carmichael coal mine in North Queensland is facing multiple financial crime and corruption probes, with Indian authorities investigating Adani companies for siphoning money offshore and artificially inflating power prices

Companies under scrutiny for the alleged corrupt conduct include Adani Enterprises Limited — the ultimate parent company of the massive mine planned for the Galilee Basin.

Two separate investigations into allegations of trade-based money laundering by Adani companies are underway — one into the fraudulent invoicing of coal imports and the other into a scam involving false invoicing for capital equipment imports.

"They are very serious allegations and they are being conducted by the premier Indian government agency investigating financial crime," Australia's foremost expert on money laundering, Professor David Chaikin of the University of Sydney, told the ABC.

"The allegations involve substantial sums of money with major losses to the Indian taxpayer."

Adani denies wrongdoing.

Rediff, 10 January 2017:

For the past year, Adani Power has been undergoing an overhaul for its debt, including measures such as equity infusion and refinancing. These have helped the company survive the rough times since proceeds from the compensatory rates are yet to come by. 

The firm expects its recent equity infusion, debt refinancing and the compensatory rate to lead to a turnaround in its financial position….

On December 6, the Central Electricity Regulatory Commission granted a compensatory rate for Adani Power's Mundra unit on the grounds of changes in Indonesian coal policy and shortage of domestic coal. 

In the address to analysts, after the September quarter results, the management said: "Once we have clarity in the form of CERC orders, we would obviously have the reason to work with the rating agencies and then we will make our plans."

The CERC order, however, has not led to any change of credit ratings so far for the company as its implementation hinges on the required Supreme Court approval for the same. 

CatchNews, 14 February 2017:

Earlier this year, the State Bank of India reportedly approved a loan of around $1 billion (Rs 6,600 crore ) for the company's coal mine in Australia. However, after much hue and cry in the media due to the highly stressed balance sheet of the public sector bank, the approval was withdrawn.

Hindustan Times, 11 April 2017:

The Supreme Court on Tuesday set aside an order by the Appellate Tribunal For Electricity allowing compensatory tariff to Tata Power Ltd and Adani Power Ltd, sending down shares of both companies.

Shares of Tata Power reversed early gains to fall as much as 6.78%, while Adani Power slumped up to 20% to its lowest since February 21.

The tribunal, in April last year, had said the two companies needed to be compensated as the change in Indonesian laws on coal export prices were outside the control of these companies.

Financial Review, 11 April 2017:

Indian billionaire Gautam Adani has told Malcolm Turnbull his company will seek a taxpayer-funded concessional loan of up to $1 billion to support his proposed $21.7 billion coal mine in Queensland......
Following a meeting with Mr Adani and his executives in New Delhi on Monday night, Mr Turnbull cautioned the loan – to help build a $2 billion railway line to link the mine to the coast – would have to be approved on its commercial merits by the independent board which administers the $5 billion Northern Australia Infrastructure Fund.

The Northern Star, 16 April 2017:

Shares for Adani Power Limited, the Adani Group subsidiary energy provider in India, were trading at 44.25 rupees (AU$0.9) on Monday, but dropped to 32.90 rupees by the end of trading on Friday.
Adani Enterprises, the subsidiary connected with the Carmichael Coal project, traded on Monday for 120.10 rupees ($AU2.46) a share, but has also dropped, reaching 116.85 by the end of Friday.


….the International Energy Association’s (IEA) modelling indicates that under a two degree scenario thermal coal demand will peak in the current decade and decline thereafter…..

However, for new thermal coal proposals we will: Limit lending to any new thermal coal mines or projects (including those of existing customers) to only existing coal producing basins and where the calorific value for that mine ranks in at least the top 15% globally. We define the top 15% as having a specific energy content of at least 6,300 kCal/kg Gross As Received. This value is referred to as the Newcastle high energy coal benchmark.