Critics have slammed this week’s “final investment decision” on Adani’s multi-billion-dollar Carmichael coal mine and rail project, after a spokesperson reportedly told Fairfax the miner would have to “review its options” if it missed out on a controversial $1 billion loan from the Australian Government.
The Carmichael coal mine and rail project was formally kicked off in Townsville on Tuesday, at a ceremony attended by Adani chairman Gautam Adani, Queensland Premier Annastacia Palaszczuk and federal resources minister Matt Canavan, among others.
The first stage of the controversial project, which will see the mine, rail and port operation exporting 20 million tonnes of thermal coal every year, will cost roughly $6.7 billion. Adani is reportedly $3.3 billion short of that at present, but a $1 billion loan from the Commonwealth – via the Northern Australian Infrastructure Facility – is said to be a key factor in reaching that figure.
And that’s a problem, because the Turnbull Government, along with the NAIF chief executive and its seven-member board, have not made a final decision on the $1 billion loan request, which has faced fervent public opposition since it was made earlier this year.
A spokesman for Adani this week conceded the loan was very important to the miner’s plans, reportedly telling Fairfax: “The fact is NAIF is critical. If we don’t receive that loan, then we are going to have to look at our options.”
The news comes after the Queensland Government cut a controversial deal to defer millions of dollars in royalty payments for the mine, with Palaszczuk insisting the royalties would all be paid in full, plus interest, in the future.
Canavan reportedly told the AFR it was a “potential risk” if Adani was indeed relying on the NAIF funding to progress its project.
“They seem confident they can arrange the finance,” Canavan was quoted as saying. “They will lock down their financial models and as part of that due diligence they will share that with NAIF. It is a potential risk – there’s no doubt about that – but it’s a project of enough significance and potential to push ahead regardless to see that it can happen.”
The Greens have accused Adani of essentially trying to bully the Government into approving the loan.
“The Greens will establish a Senate inquiry to investigate the NAIF, which looks set to become a $5 billion coal slush fund,” Greens Senator Larissa Waters said.
“If a billion dollars wasn’t enough Queensland Labor are also offering a ‘dig now, pay later’ $253 million freebie for a dodgy multi-national mining company.”