The Carmichael coal mine has been officially approved by the government, courts and now the Adani Group board in an announcement by the Adani Group Chairman, Gautam Adani, and the Adani CEO Jeyakumar Janakaraj at the new mega mine’s Australian headquarters in Townsville North Queensland today.
The Adani Group have published the decision as a “Congratulations to Adani! It’s great to announce the commencement of the Carmichael project on the 158th Queensland birthday. A memorable day for long-term partnerships.” Happy Queensland day on the 6th June 2017.”, the Adani Group said.
Funding for the project can now be secured by the mining giant. Despite all the Australian banks declining to financially support the project, the Adani CEO Jeyakumar Janakaraj said: “This decision is to inject equity into the project and as you all know the finance world works at certain equity to debt ratios for every project”.
A visibly relieved Queensland Premier Anastasia Palaszczuki addressed the hardship of the North Queensland people, acknowledging the transparency of the Adani Group over the past two and half years and commended the company’s investment in global renewable energy projects, as the investor in the largest solar project in the world in India.
The events over the past couple weeks have been a roller-coaster of announcements. Go-ahead speculation, Labor party factional fighting and Green leaks to the media, city and regional rivalry had come to the possibility that the coal mine may not get approved. Meanwhile, the people of North Queensland felt every emotion from the on-again, off again coal mine project just as though a State of Origin championship against the Blues was at stake.
Meanwhile, the people of North Queensland felt every emotion from the on-again, off again coal mine project just as though a State of Origin championship against the Blues was at stake.
In a speech to the press gallery in Townsville, the Premier said, “A lot of people have lost jobs in the downturn in the resources sector, and today is a vote of confidence, not just in the Queensland economy, but in Queensland people. – and our greatest asset is our people.”
The journey to this point for the Adani coal mine has been 10 years in the making, from the purchase of the mine to submitting and complying with strict environmental, native title, land and resource management requirements enforced by the federal and state governments.
The Green campaigners, their climate change network of disruptive protectors and their extensive financial supporters are hell-bent on stopping the largest coal mine in the world from proceeding. Adani’s Chairman has confirmed protesters targeted the courts, politicians, inner-city streets, aboriginal interests, and the banks throughout the feasibility and approval stages of the project.
The environmental impact study was submitted by Adani 2332 days ago, Matt Canavan, Federal Minister for Northern Australia said.
Opposition towards the project by environmental groups is strong. The Stop Adani Alliance spokesman and the chairman of Australia Conservation Foundation said: “Adani is yet to lure any financial institutions willing to bankroll the project, which is proving very unpopular with the Australian public.”
Ms. Palaszczuki also said at today’s announcement; “Can I also thank Adani too for allowing me to go over to India to see first-hand the extent of operations. But I also want to thank the twelve mayors. It was the largest delegations where eight regional managers were able to present to the (Adani) board.”
Obscuring a large map showing the extent of positive impacts across 12 council districts and towns in regional Queensland on the wall, the Premier also said; “I also want to commend Adani in relation to their investment, not just coal but in solar, and this is very important. The mayors were able to view the largest solar farm in the world that Adani has made, and we are also seeing that investment in renewables here in Queensland.”
Effectively the announcement today by the Adani board enable the executive of the company to proceed to secure the billions of dollars necessary in commercial finance for the project, the announcement of which is expected in the coming weeks.
The 16.5 billion Carmichael coal mine is expected to generate 10,000 jobs in the construction phase of the 388-kilometre rail line from Abbott point to the Galilee Basin, and the mine construction and the ongoing operation of the mine over the next 60 years. $150 million in contracts have already been announced with Australian steel and concrete suppliers. Adani has already spent $3 billion on port infrastructure at Abbot Point near Bowen.
Although unemployment, bankruptcies and mental health have been destructive consequences for North Queensland from the economic downturn in recent months and years, the confidence of business has increased on the expectation that major projects will be forthcoming.
The Adani Group chairman’s announcement today will boost business confidence even further, attracting investment and demand for indirect jobs in the economy, and providing much needed economic stimulation across the region.
The rail and mine construction, and its ongoing operation will provide significant positive demand on property assets over the coming months and years. Despite the mine being located outside of the Townsville districts, the Adani headquarters will be based in Townsville and possibly the fly-in fly-out workforce with Rockhampton.
With the new mining royalty arrangements with Adani in place and ratified by the Labor cabinet, the Palaszczuki government said: “We want to make Queensland the investment choice state of the nation, and that’s what we are doing by diversifying our economy.”
Poverty affects millions of people in India. 170 million people have no access to electricity and limited economic prospects in India with a population of 1.2 billion people.
With malnourishment and hunger a massive problem in India, it is estimated 179 million people survive on less than $1.90 per day. India is also considered the most inequitable country in the world, with 60% of the country’s wealth held by just 1 percent of the population.
Queensland’s Galilee Basin has the cleanest coal in the world. Supplying more efficient large quantities of energy to the people of India is expected to reduce emissions, replacing dirtier coal from Indonesia, expand the capacity in the Indian Energy Network, subsequently helping more people out of poverty and increasing the middle-class that distribute the wealth more broadly and equitably.
As we have seen in China recently, an increasing middle class has added trillions in economic prosperity to the global economy. Energy infrastructure development has played a vital role in China’s record growth over the past 20 years.
Now it is India’s turn for growth and prosperity.
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