Australia Approves Adani's $16 bln Carmichael Coal Project

By Joseph R. Fonseca
Monday, July 28, 2014
Gautam Adani

 

The Australian government on Monday approved Indian firm Adani Mining Pty Ltd's controversial A$16.5 billion ($15.5 billion) Carmichael coal and rail project in Queensland, subject to strict conditions to protect groundwater.

The Carmichael mine, which could become Australia's largest coal mine at 60 million tonnes a year, has sparked protests from green groups and marine tour operators worried about carbon pollution and export of the coal from a port near the Great Barrier Reef.

Greenpeace said the conditions imposed on the project would do little to protect the environment from the bigger impact of shipping through the World Heritage-listed reef and burning the huge amounts of coal the mine will produce.

"A massive coal mine that will damage the Great Barrier Reef and do damage to the local environment and fuel climate change is not protecting the environment," said Ben Pearson, Australia  Pacific programme director for Greenpeace.

The Carmichael coal lode is in the outback Galilee Basin, where massive reserves of coal remain untapped due to the hefty costs of building ports and rail lines to the east coast nearly 500 kilometres (310 miles) away.

Hurdles to Galilee Basin projects have increased as coal prices have sunk to near five-year lows and as global pressure to cut coal to curb carbon emissions has stoked uncertainty over long-term demand, making it tough to raise funds for projects.

Despite the challenges, Adani and compatriot GVK, which is working on a rival Galilee Basin coal project with Australia's richest woman, Gina Rinehart, are still planning to build large new mines, rail lines and a port terminal.

"We welcome the Minister's approval of the Carmichael mine and Rail project, which takes us another step closer to delivering our multi-billion dollar mine, rail and port development," Adani Chairman Gautam Adani said in a statement.

The environmental conditions imposed on Adani's project were largely to address concerns raised by landowners worried that coal projects in the area will affect groundwater supply from the Great Artesian Basin.

"The strict conditions will ensure the protection of the environment as a paramount concern," Australia's environment minister, Greg Hunt, said in a statement.

Adani, which recently lined up South Korea's  POSCO Engineering & Construction Co Ltd to build the rail line for the project, aims to start producing in 2017, which would be three years behind its original target.

Adani and GVK's combined port plan had already won government approval, but that is being challenged by green groups and marine tour operators.

(Reporting by Sonali Paul; Editing by Stephen Coates)

($1 = 1.0641 Australian Dollars)

Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Energy

AOD Orders 2 Jack-up Rigs at CSSC Huangpu Wenchong

CSSC Huangpu Wenchong Shipbuilding Company has won an order to build a pair of jack-up drilling rigs for Alliance Offshore Drilling (AOD), subsidiary of Hong Kong-listed TSC Group.

Canada Slaps Sanctions on Russia Energy Firms

Canada slaps sanctions on Gazprom, other Russia energy firms   Canada is imposing economic sanctions against Russian energy firms such as natural gas producer

FUGRO, Cross Group Awarded Multi Well GoM Contract

Fugro’s dynamically positioned multi-purpose drilling, well intervention and geotechnical vessel, Fugro Synergy, will showcase her capabilities on a multi well

News

Container Ship and LPG Tanker Collide near Surabaya

LPG tanker Navigator Aries (23,333 dwt, built 2008), and containership Leo Perdana (33,423 dwt, built 2007) collided yesterday in waters off Gresik, nearby the Port of Tunjung Perak in Surabaya,

Global Ship Lease Extends Panamax Charter with X-Press Feeders

Global Ship Lease, Inc. has agreed to extend the time charter for the Ville d'Orion, a 1997-built, 4,113 TEU vessel currently on charter with Sea Consortium Pte Limited,

Pipavav Port Resumes Operations

Gujarat Pipavav Port (APM Terminals Pipavav) has resumed operations following improvement in weather conditions.    Last week, the port operations were suspended

 
 
Maritime Contracts Maritime Security Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1695 sec (6 req/sec)