Adani hits back at claims
Mining giant asks green group to do fact checks
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.
UNDER WAY: Work at Adani’s Carmichael Mine site has begun.