Dec 12, 2017

Will Adani ever get the money it needs to build that bloody massive mine?

With major banks all around the world turning their banks on the controversial mine, Adani better dust off the ol' guitar and get busking.

Seven years ago, Anna Bligh announced the approval of what would be Australia’s largest ever coal mine. Now that mine -- Adani’s proposed $16.5 billion Galilee Basin project -- is swamped with controversies. These include the expected environmental impact of the mine, rubbery employment figures spruiked by Adani, and questions around native land use agreements.       

Of more immediate concern, however, is the fact the project is financially unbankable, with Annastacia Palaszczuk announcing that she will officially veto a $1 billion railway loan to Adani, after being sworn in as Queensland Premier today. Not to mention the fact India and China are planning to end coal imports, and the commodity isn't anywhere near valuable enough to see any return on investment. So, whatever ends up being built increasingly looks like a stranded asset. And yet many politicians are still pushing for Adani to get a loan described as a “high-risk gamble” by The Institute for Energy Economics and Financial Analysis.

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12 thoughts on “Will Adani ever get the money it needs to build that bloody massive mine?

  1. zut alors

    It beggars belief that naive Oz politicians think they can negotiate brilliant deals with the likes of the wily Indian Adani businessman. Locals with never come off better than the foreigners from such a project, the balance of profit flows out of Oz, not into Oz.

    Thank god the penny finally dropped with Palaszczuk during the first week of the election, the public were hostile to Adani just as we had been when Anna Bligh began selling off state assets. Bligh didn’t listen, Palaszczuk did.

    Coal mining is a dud business. Turnbull & Coalition dinosaurs can continue to justify it, talking it up as much as they like but it doesn’t change the reality that coal is not viable compared to renewables.

  2. Roger Clifton

    I hasten to contradict you. Far from being more expensive than wind, coal is way and above the cheapest dispatchable power source for most of Australia. It will stay that way until we introduce a hefty carbon tax. Declaring otherwise is not helpful to the cause.

    For that matter, implying that wind and solar can replace coal relies on us readers being too shy to argue back. Intermittent power cannot possibly supply base load. Sure, wind backed by gas could replace coal, but it would be expensive. Especially if we can get that carbon tax in place!

    1. zut alors

      I am no expert but with burgeoning higher battery storage & the vastly cheaper thermal storage currently being developed, coal will be the expensive option fairly soon. AGL are backing off from coal, do you know something vital about the business model’s viability which they don’t?

      Biogas from wastewater will also be the preferred economic option over environmentally damaging fracking. These developments are happening at a fast rate & have no trouble being funded – unlike Adani.

      1. Roger Clifton

        Zut, these things do not stand the test of arithmetic. The biggest battery in the world can only contain six minutes of South Australia power consumption. Thermal storage has been in development for more than 100 years but has yet no installation can provide a week of storage, let alone provide it cheaply. Yes, the writing is on the wall for coal, but it is because it costs the environment too much, not our wallets. Biogas from wastewater can only extract some of the energy in our shite, which is one heck of a lot less than the energy in the national power bill.

        Let’s not forget that the most environmentally damaging thing about fraccing for gas is the gas itself. It’s methane, 20 times worse than CO2 over a century. Eventually, gas must go, too.

        1. Richard

          the biggest battery in the world is for load balancing.
          If you want o/n and/or wind and sunless power distribution, you go for something like the BZE plans.. about which knowledgeable politicians have been silent as the grave our planet could become.
          It defies and sort of sense that the reason a planet killing commodity is NOT to be used is because it is more expensive than the safer, non planet killing options. I think any other sentient being who put that forward on any other planet, the inhabitants of which considered themselves as “intelligent”, would be shot forthwith into the nearest star.
          Shame we can’t do that with our so called “economists”.

    2. AR

      Dodger – you remind me of the “Vietnam was a US victory” types who re-emerged from the woodwork in the 90s, forcing normal people to sigh & rummage through cartons of old cuttings & analyses in the garage for the standard responses to tired old fatuities.
      Arguments so wrong that they aren’t even stupid.

      1. Roger Clifton

        Rummage away, by all means. The fact that you have forgotten the tired old answers means that they are certainly out of date.

        1. AR

          True answers don’t age or fade.
          Alas, stupid objections though appear unlimited.

  3. klewso

    Such “a sure thing”?
    And with all that money themselves : they want to lay off their risk/exposure, like bookies? Not only that but the likes of Malfoy, Canavan and Jethro want us to accept the mark? How much is Adani donating to them?
    Will Rupert and his mob put their money where their mouth is and invest – like they reckon we should?

    1. Richard

      No .. and the human vulture$$ won’t be around when the shite they salivate for really does hit the blades, as is will, cos it is already on the way there!

  4. Richard

    Anybody who suggest that Adani should not be built predominantly on economic grounds should be sentenced to spending the next 10 years of their miserable lives in Gwalior, India. The city with the most industrial inc coal, pollution. Then they can be sacrificed (painlessly but surely) and dissected to determine the effect of such pollution on lower forms of life.

    1. [email protected]

      This is true, Richard. And WHO figures show air pollution responsible for 2 million deaths annually, mostly attributable to coal.

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