Australia's green groups keep heat on Adani after mine approval

Image
Reuters
Last Updated : Apr 04 2016 | 11:07 AM IST

Environmental campaigners say they hope two outstanding court cases can still stop India's Adani Enterprises Ltd from developing a A$10 billion ($7.6 billion) coal project, even after it received a key state government approval.

The granting of a mining lease by the state government marked another step in Adani's long-running bid for approval to mine and ship an estimated 11 million tonnes of coal reserves, building roads, power lines and pipelines to do so.

But activists - some 200 of which protested outside the Queensland parliament on Monday - say the ongoing federal court challenges could still throw Adani's plans into doubt.

Benedict Coyne, a lawyer for the Wangan and Jagalingou people, who have rejected a land use agreement with Adani, said he was surprised a decision had come while the cases were still in process.

"If it is found that the decision was not made lawfully, then any (further) decisions are called into question," he said.

Adani said in a statement on Sunday that it had a "clear and positive" commitment from the government and welcomed the approval as an important milestone.

The group said it expected appeals to be resolved in 2016, allowing construction to begin in 2017.

Adani, which has battled opposition from green groups since work on the project began five years ago, will now need to resolve its financing, with banks under increased pressure not to provide loans for coal in particular. (Full Story)

Several international banks have said they will not provide financing for coal mining in the Galilee Basin, while Standard Chartered STAN.L and Commonwealth Bank of Australia CBA.AX pulled out of the project in August. (Full Story) (Full Story)

Adani has said tough market conditions should not put pressure on the project because most of its coal is already earmarked for Adani-owned power plants in India, rather than for sale on the open market.

($1 = 1.3106 Australian dollars)

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Apr 04 2016 | 10:53 AM IST

Next Story