Adani Mining gets a new name, rebranding exercise gone awry?

  • November 06, 2020 07:20 PM AEDT
  • Kunal Sawhney
    Kunal Sawhney
    CEO Kunal Sawhney
    2781 Posts

    Kunal Sawhney is founder & CEO at Kalkine and is a richly experienced and accomplished financial professional with a wealth of knowledge in the Australian Equities Market. Kunal obtained a Master of Business Administration degree from University of T...

Adani Mining gets a new name, rebranding exercise gone awry?

Summary

  • India’s Adani Enterprise is once again in the spotlight as it has changed the name of its Australian unit to Bravus Mining and Resources.
  • The branding exercise has drawn attention as the name ‘Bravus’ in Latin translates to barbaric.
  • Adani had faced flak from the environmentalists in the past, with slogan “stop Adani” doing rounds across the country few years ago.
  • Environmentalists protested over a threat on aboriginal land, groundwaters, and the Great Barrier Reef.

India’s Adani Enterprises has once again grabbed the market attention after the company renamed its Australian unit to Bravus Mining and Resources.

The rebranding by the Indian miner came ahead of its preparations to ship its first coal from the mine by next year.

The Company’s rebranding exercise seems to have started on the wrong note after mistakenly interpreting the Latin word Bravus for “brave”, which as per some lingual experts rather mean “barbaric”.

“Stop Adani” Déjà Vu?

The Australian unit of the Indian miner had been on the receiving end of environmentalists’ backlash with a lot of vocal opposition against the mine development in October 2017.  The slogan “stop Adani” had gained traction across the country few years ago.

However, the miner had gained support from many workers across coal-producing regions seeking employment opportunities.

The same undercurrent tilted the last national election in favour of conservative coalition, as coal workers extended their support for new jobs.

Carmichael Coal Project - Adani’s Achilles’ heel

Carmichael thermal coal mine, located in the Galilee Basin, Central Queensland, is currently under development and construction with approvals from the state and the federal government.

  • At present, Bravus Mining is planning to build 10 million tonnes per year of mine and rail line, employing over 1,500 people and more than $1.5 billion worth of tenders.
  • The same mine has been envisioned as one of the largest mines across the continent, but over the years of planning and regulatory process, it has been scaled down.

The mine project has been embroiled in controversy. Many environmentalists believe that the development of the mine is a threat to ancestral lands, waters, and the culture of indigenous Wangan and Jagalingou people.

Furthermore, environmentalists believe that the development and production at and from the mine would attract shipping traffic through the Great Barrier Reef while adding ~ 4.7 billion tonnes of carbon into the atmosphere over its estimated lifespan of 60 years.

Adani’s Response

In reply, Adani Enterprises mentioned that the development requires close monitoring and strict compliance to ensure groundwater preservation. Further, the approvals from the state and the federal government include ~ 100 different conditional norms concerning the groundwater.

Samsung Securities Withdrew Funding

The investment arm of the South Korean behemoth – Samsung Securities had withdrawn the funding for the coal port after protesters targeted the conglomerate over ties with the coal mine project.

In a nutshell, while the project has attracted a strong opposition in the past, the rebranding has once again ignited a strong vocal opposition from climate activists, citing that the development would destroy aboriginal land, Queensland aquifers, and the Great Barrier Reef.

However, Adani Enterprises and its Australian unit are defending the development, citing that a long list of approvals requires strict compliance.  

 


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