Media Release
2 September 2019
Mackay locals concerned about Adani’s financial situation.
New reports analysing Adani Mining’s financial situation have some Mackay locals concerned.
“Adani has shown it can’t be trusted with the environment. Now Mackay locals are also very concerned that Adani may not be able to pay their bills to contractors.” Said Sunny Hungerford , a spokesperson from Mackay Conservation Group
“The new Institute for Energy Economics and Financial Analysis (IEEFA) reports outline Adani’s perilous financial situation and notes that Adani Mining already appears insolvent. We are worried that Adani will cause a lot of damage to our environment in the process of building a project which may collapse. The Adani Carmichael coal mine looks like it will be leaving financial and environmental chaos in its wake.”
One concerned member of the Mackay community, Stephen Bulloch, who has now retired from the coal industry, commented on the subject. “Adani’s financial situation doesn’t look good, I personally would not take the gamble of working with Adani, it’d be backing the wrong horse”
“I remember back in 2013 when there has all that fuss about Adani not paying their bills to Mackay contractors - John Holland was owed millions way back then”
Contractors have had financial and legal problems with Adani’s Carmichael Rail Project in the past. AECOM had to go through a lengthy legal battle to recover $16.9m owed to them by Adani.
The IEEFA reports note : “ Adani Mining has negative tangible assets, zero income, billions of existing liabilities, and negative shareholder funds of A$507 million.
Adani Mining appears insolvent, were it not for a parent entity guarantee from Adani Enterprises in India, but IEEFA notes this is via tax-haven controlled entities based in Singapore and Mauritius. Adani Mining is already carrying $1.8 Billion dollars of debt in Australia.
Ultimately, the Carmichael thermal coal export proposal is in our view unviable and unbankable on any normal commercial evaluation, absent massive government subsidy support in both India and Australia.”
Ms Hungerford says “ The reports show that the Carmichael project would need billions of dollars of tax - payer funded subsidies to be viable.
It is estimated that Adani needs over $4 Billion dollars worth of taxpayer funded subsidies to make the mine financially viable for them. This figure includes a royalty holiday.
That is a lot of money that could be spent on hospitals, schools, roads, and setting up sustainable industries such as renewable energy, which would create cheaper electricity as well as more safe and stable jobs”
“We think the politicians and contractors that support the Adani mine are taking an unacceptable gamble, our region could bear the burden of hefty financial and environmental costs as a result of the Carmichael coal mine. We should be encouraging more sustainable projects that don’t cost us our precious water resources and don’t risk putting tax payers and business owners out of pocket”
IEEFA Reports:
IEEFA Australia: Contracting with Adani Australia entails counterparty risks
End.
For Media enquiries contact
Sunny Hungerford
Mackay Conservation Group
Phone 07 49530808