Adani hits back at claims

Min­ing giant asks green group to do fact checks

Daily Mercury - - OPINION - Kate Camp­bell, Head of Com­mu­ni­ca­tions, Adani Aus­tralia

OF­TEN we see in­for­ma­tion and com­ments made about Adani’s busi­nesses and projects that are in­cor­rect. Mackay Con­ser­va­tion Group’s com­ments on Fri­day Septem­ber 6 in the Daily Mer­cury ‘Fri­day on my mind’, are a clear ex­am­ple of false in­for­ma­tion be­ing spread about Adani’s busi­nesses.

Anti-fos­sil fuel ad­vo­cacy or­gan­i­sa­tion In­sti­tute for En­ergy Eco­nomics and Fi­nan­cial Anal­y­sis has re­leased another in­ac­cu­rate re­port about Adani as part of its on­go­ing cam­paign to stop the use of fos­sil fu­els like coal and gas. This IEEFA anti-fos­sil fuel paper at­tempts to res­ur­rect old and patently false and in­ac­cu­rate claims sug­gest­ing that the Carmichael Project will only be vi­able be­cause of a va­ri­ety of gov­ern­ment sub­si­dies and Adani is trad­ing while in­sol­vent.

IEEFA is known for pub­lish­ing alarmist pa­pers that at­tempt to dis­credit the fos­sil fuel in­dus­try us­ing flawed anal­y­sis in or­der to achieve its stated aim of tran­si­tion­ing to re­new­able en­ergy. Its cam­paign to dis­credit Adani’s Carmichael Project be­gan in 2013 and has in­volved the pub­li­ca­tion of a number of pa­pers containing false claims and as­so­ci­ated publicity stunts. IEEFA has known as­so­ci­a­tions with left-wing ac­tivist groups, in­clud­ing act­ing as a spokesper­son in cam­paign videos for Get Up!, which re­ceived $495,000 from the anti-fos­sil fuel ac­tivist group Sun­rise Project last year to ad­vance its anti-coal agenda. IEEFA also states on its web­site that it re­ceives funds from a number of or­gan­i­sa­tions with known as­so­ci­a­tion to the anti-fos­sil fuel move­ment, such as the US-based Rock­e­feller Fam­ily Fund, which funded the strat­egy for the anti-coal move­ment ‘Stop­ping the Aus­tralian Coal Ex­port Boom’ . They are also funded by the US-based Flora Fam­ily Fund, whose links to The Sun­rise Project, San­dler Foun­da­tion, IEEFA and the Growald Fam­ily Fund were revealed in the Wik­ileaks John Podesta emails that de­tail the con­certed in­ter­na­tional cam­paign to stop Adani’s Carmichael Project.

While ev­ery­one is en­ti­tled to their own opin­ion, it is im­por­tant that com­men­ta­tors de­clare their per­sonal and fi­nan­cial in­ter­ests upfront when dis­cussing is­sues so as not to give any mis­rep­re­sen­ta­tions of in­de­pen­dence and im­par­tial­ity.

Over the past eight years IEEFA’s in­cor­rect anal­y­sis has in­cluded failed pre­dic­tions that Queens­land’s suc­cess­ful nat­u­ral gas in­dus­try was un­vi­able – the in­dus­try now supplies a significan­t proportion of the gas used in eastern Aus­tralia and is one of the world’s largest ex­porters of LNG. IEEFA also in­cor­rectly pre­dicted Adani would not be able to start con­struc­tion of our Carmichael Project and would not cre­ate jobs – project con­struc­tion is now un­der­way and em­ployee num­bers are grow­ing daily as our con­trac­tors re­cruit their work­forces.

Fact check: Adani is not trad­ing while in­sol­vent

Adani has been op­er­at­ing suc­cess­fully in Aus­tralia for nine years and has in­vested more than $3.6 bil­lion into the Aus­tralian econ­omy dur­ing that time. Over nine years our con­trac­tors, em­ploy­ees, con­sul­tants and other busi­ness part­ners have been paid.

Our op­er­a­tions here are Aus­tralian busi­nesses, op­er­at­ing un­der Aus­tralian fi­nan­cial reg­u­la­tions and tax­a­tion leg­is­la­tion and all other Aus­tralian laws and reg­u­la­tions.

Like other Aus­tralian busi­nesses, our ac­counts are an­nu­ally au­dited and tested for matters such as in­sol­vency and as­sessed against other fi­nan­cial re­spon­si­bil­i­ties and ac­count­abil­i­ties.

Like other Aus­tralian com­pa­nies Adani Min­ing is re­quired to re­port its bal­ance sheet to ASIC un­der Aus­tralian law, and our bal­ance sheet has been pub­licly avail­able for the past eight years for peo­ple to view.

Just like ev­ery min­ing project, our project will not gen­er­ate in­come un­til the mine and rail are built and op­er­at­ing and coal can be sold and ex­ported. Un­til we start pro­duc­ing and sell­ing coal, we will be con­tin­u­ing to in­vest in the devel­op­ment of the mine and rail and there­fore this will be treated as an ac­count­ing loss.

Fact check: we will pay our own way, there are no gov­ern­ment sub­si­dies.

The roy­al­ties agree­ment is be­ing pro­gressed in line with time­frames out­lined by the Queens­land Co­or­di­na­tor Gen­eral and the de­tails of the agree­ment are com­mer­cial in con­fi­dence. Claims that IEEFA are aware of the de­tails are far­ci­cal con­sid­er­ing they have not been party to any ne­go­ti­a­tion dis­cus­sions.

Fact check: Aus­tralian min­ing and agri­cul­tural busi­nesses are en­ti­tled to fuel tax credits.

Fuel tax credits are part of Aus­tralian tax­a­tion pol­icy, which min­ing and agri­cul­tural busi­nesses are en­ti­tled to un­der Aus­tralian law.

Fact check: Our op­er­a­tional water sources are State Gov­ern­ment reg­u­lated

We have pub­licly and re­peat­edly stated ex­pected water use for the mine and pay­ments for water. Any op­er­a­tional water sourced of­flease must be paid for at a sim­i­lar rate to other water users. Adani will not take water from the Great Arte­sian Basin. Fur­ther­more we will only take the nec­es­sary ground water re­quired to en­able min­ing to be safely un­der­taken.

Fact check: There is no state, fed­eral or lo­cal fund­ing go­ing to Adani’s roads.

There is no fed­eral, state or lo­cal gov­ern­ment fund­ing go­ing to the devel­op­ment of Adani’s roads and any claims to the con­trary are false. All lev­els of gov­ern­ment have re­peat­edly stated this.

We ex­pect anti-coal ac­tivists will con­tinue their at­tempts to dis­credit and mis­rep­re­sent our or­gan­i­sa­tion and op­er­a­tions. We will not be in­tim­i­dated and will de­liver our Carmichael Project and the benefits it will bring to re­gional Queens­land.

Picture: Con­trib­uted

UN­DER WAY: Work at Adani’s Carmichael Mine site has be­gun.

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