2019-10-22 09:47:471970-01-01 00:00:00

An End to the Charade

Adani had finally received the green light from the Queensland Labor government to begin the construction of its thermal coal mine. After the shockingly poor performance during the recent Federal Election, Labor had done a 180 degree turn on its stance in the hopes of clawing back support from regional blue-collar workers.

Adani Coal Mine

Coal is an important source of energy within Australia, providing more than 60% of the electricity production within Australia. Up to 75% of extraction, however, is exported overseas to East Asia. Most coal mining occurs in mining sites located in Queensland, New South Wales and Victoria.

Adani Australia is an energy and infrastructure subsidiary of Adani Group based in India and founded by Indian billionaire Gautam Adani. It has already invested $3.3 billion in Australia through its renewables energy project involving solar farms in Queensland and South Australia. The Adani Mine, which has appeared in the media for all the wrong reasons, refers to the coal mine project located within the north of the Galilee Basin in Central Queensland, intended to supply coal to power plants in India. If approved, Adani would join the existing network of 125 coal mines in Australia to produce over 10 million tonnes of coal each year.

It lodged its initial application on the 22nd October 2010 with the local government, with a much more ambitious plan to build a $16.5 billion mine, producing 60 million tonnes of thermal coal each year, along with a rail line measuring 388 kilometres. However, a lack of funding from domestic and Chinese banks has led to its downsizing to make it more economic.

Legal Challenges abound

Legal and political roadblocks have dragged Adani Group through an incredible 3,156 days of bureaucracy without results, before finally gaining approval to start construction of the mines in June this month. The initial proposal back in 2010 alarmed environmentalists due to the sheer scale of the project.

The first challenge came from native land title claims from Indigenous landowners of the Wangan and Jagalingou People, who were concerned with the impact on ancestral lands, waters and cultural heritage. Most critics however, belong to the group of environmentalists who have been very vocal in making their stance known. Opponents of Adani include the Mackay Conservation Group, Land Services of Coast and Country Inc, and the Australian Conservation Foundation. Common points of contention include the poor track record of Adani in India, endangerment to local wildlife, greenhouse gas emissions, overstating the number of jobs created and the financial viability of such a large scale project. While some of these issues had been resolved, public outcry has prevented the local Labor government from giving Adani their full support.

Loyal Voter Base turns against Labor

Queensland voters in favour of the mine turned their backs on Labor for failing to listen to their concerns. Voters uniformly swung from Labor to right-wing parties in the 2019 Federal Elections. On a two party preferred basis, five of six federal elections in Queensland’s regional areas swung to the Coalition, with votes going to the United Australian and One Nation Party. The Coalition decisively won, leading with 77 seats in the parliament. Labor’s wipeout in Queensland, traditionally a very strong and loyal voter base, forced Queensland Premier Annastacia Palaszczuk to pave the way in setting a definitive date to resolve the Adani issue. “We need some certainty and we need some time frames. Enough is enough”, Ms Palaszczuk said on the issue. With the State Elections one year away, the local Labor government must do more to hold on to its position.

Future for Adani

After almost 9 years in limbo, the Department of Environment finally relented and approved the current groundwater management plans (GDEMP). Labor’s poor showing during the Federal Elections had certainly sped up the approval process, but the looming threat of a recession has also contributed to Adani’s win. Lucas Dow, CEO of Adani Mining, has said that “the finalisation of the GDEMP and Black-throated Finch Management Plan paves the way for construction to commence on the Carmichael Project and the delivery of much needed jobs for regional Queenslanders”.

Dow estimated that the project will create 1500 direct and 6750 indirect jobs during its initial construction phase, with Townsville and Rockhampton being primary employment hotspots. Adani will now begin work on finalising contracts, mobilising equipment, recruitment and inductions. This will soon be followed by construction of fencing, bridges, road upgrades, water management and the important Carmichael Rail to transport the coal to Abbot Point Port. The project is of great importance in revitalising Australia’s economy, since it’s been over 50 years since a new coal mine has been opened. Adani will still need to negotiate a royalties agreement plan with the Palaszczuk government, and resolve the legal challenges in its way before work can be officially commenced.

By Oliver Ju

Click here for a 7 days access to our Lotus Blue Portal.

KOSEC does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information provided. KOSEC is intended to provide general information only. Please be aware that investing involves the risk of capital loss. This message is confidential and may be privileged. It is intended only for the use of the addressee named above. If you are not the intended recipient, any unauthorised dissemination, distribution or copying is illegal. We do not guarantee the security or completeness of information hereby transmitted and are not liable in either respect or in respect of any delay. Nothing in this message is intended as an offer or solicitation for the purchase or sale of any financial instrument. Any market prices or data, unless specifically verified and identified as such, are not warranted as to completeness or accuracy. Kodari Securities Pty Ltd (KOSEC) is a Corporate Authorised Representative (No. 399 556) of Longhou Capital Markets (AFSL No. 292464) which is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC wishes to disclose that KOSEC and its staff may hold stock they recommend in their own portfolios and that any decision to purchase recommended stock should be done so after the purchaser has made their own inquires as to the suitability to their own requirements. Click here to view our FSG.

KOSEC Terms & Conditions

Kodari Securities Pty Ltd (CAR 399556) trading as KOSEC is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC is a financial services company and any information provided by its platforms, portals, reports and documents is protected by copyright. Any unauthorised production of this information is prohibited.
KOSEC reserves the right to change or remove any information provided on our website, reports or any documents including these terms and conditions at any time without notice. The change or modification to the terms and conditions will be effective immediately upon posting an updated version on our website, necessary platforms and documents. It is recommended that you review the information provided on our website, including these terms and conditions frequently for any changes.

Disclaimer
KOSEC provides general advice only. The information provided is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. KOSEC recommends that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Please make sure you read our Financial Services Guide (FSG).

KOSEC does not guarantee any returns. Past performance of any product discussed is not indicative of future performance. (We urge that caution should be exercised in assessing past performance. All financial products are subject to market forces and unpredictable events that may adversely affect their future performance). Investing in the stock market can incur huge losses. Please also be aware that fees will incur on every transaction regardless of the performance of your investments or returns generated. Employees and or associates of KOSEC may hold one or more of the stocks, securities or investments reviewed by the company.

Your use of information from our website, reports, documents and from talking to our representatives/associates is at your risk. Under no circumstance should the investment be based solely on KOSEC information and general advice. You should seek professional financial planning advice.
KOSEC aims to maintain the accuracy of the data and information provided on this website, by using information prepared from a wide variety of sources, which KOSEC to the best of its knowledge and belief, considers accurate and does not make any representations or warranties of any kind, expressed or implied, about the completeness, accuracy, reliability, suitability or availability of the information provided.

We may at times refer to third parties, which the details of these third parties have been provided solely for you to obtain further information about other relevant products and entities in the market. KOSEC has no control over the information third parties have, or the products or services offered, and therefore make no representations regarding the accuracy or suitability of such information, products or services. You are advised to make your own enquiries in relation to third parties. Our inclusion of any third party content is not an endorsement of that content or the third party.

Fees
As a client you will be charged a yearly service fee and a set brokerage fee per transaction. Your service fee will automatically renew at the end of your agreed 12 month period at the same rate advertised at the time. Your credit card or bank account will be charged for a further year following which will again auto renew until you cancel your yearly service fee. You can cancel the auto renewal at any time in advance of the renewal date by contacting us. KOSEC is aware of the need to ensure the security of your credit card details and our payment systems are compliant with the Payment Card Industry (PCI) Data Security Standard.

Privacy
You consent to receiving email correspondence from KOSEC, as well as companies KOSEC has an association with. These emails will be sent by KOSEC and third party companies. You can opt out of receiving any category of emails at any time by contacting us. We may from time to time inform you of special offers, or even ask your opinion of the services we provide, but your involvement is optional. Should you request us to do so, we will archive your details.

Indemnity and Liability
You indemnify KOSEC from all claims or threatened claims, suits, demands, damages, costs as well as including legal costs incurred in dealing with any threatened claim, expenses made by any person or corporation against KOSEC and any other amounts which is caused by KOSEC providing information, execution and General Advice.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from a decision made by you on the basis of information obtained through the use of our portal, reports, documents or any General Advice given and any transaction taken place.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from delays in executing orders for the client and acknowledges KOSEC makes no guarantees about the time taken to execute an order on behalf of the client. You acknowledge that KOSEC relies on third parties in providing technology and release KOSEC from any harm, loss or damage you may suffer as a result of the failure of such information technology.

Cookies and Links
KOSEC website, and its portal uses cookies, which lets us identify your browser while you are using the site or our portal. Cookies do not identify you personally. They simply allow us to track your usage patterns. If you prefer not to receive cookies, you can configure your browser to reject them or to notify you when they are being used. The functionality of the KOSEC website may be impacted if you restrict the use of cookies.

Fill up the form below and we will get back to you as soon as possible.

CLAIM YOUR FREE E-BOOK &
7 DAY ACCESS TO LOTUS BLUE

STOCK MARKET SUCCESS

KOSEC’s CEO, Michael Kodari’s new book, “Stock Market Success” valued at $39.95, available at Dymocks book stores with all the proceeds going to Dymocks Children’s Charities.

CLAIM YOUR FREE E-BOOK WHEN YOU LOGIN TO LOTUS BLUE INVESTMENT PORTAL

Latest TV Commercial