Adani heads for coal export from controversial Carmichael mine

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Adani heads for coal export from controversial Carmichael mine

Adani Mining, Adani Australia, Adani coal mine 2021, environmental impact, Carmichael mine
Image source: © John1300 | Megapixl.com

Highlights

  • Adani’s Australian mining arm will soon ship coal from North Queensland export terminal.
  • The clearance comes amid continuing protests and years of fierce campaigning from environmental and native groups.

Central Queensland’s Carmichael mine is all set to ship its first coal cargo from Australian shores. Indian Adani group’s Australian arm-Bravus Mining and Resources is heading for shipment after years of environmental controversy, and global media attention. 

The Australian Conservation Foundation has called the Carmicheal mine a mockery of Australia's emissions targets promised recently at the COP26. Federal and state governments’ support to Adani for opening the mine has pushed coal exports but also ensured that the Great Barrier Reef doesn’t survive as per the Foundation. The Foundation also stated that years of environmental campaigning has been questioned.

What benefit does Adani get from Carmicheal mine? 

  • The Carmichael mine is a high quality mine being assembled close to North Queensland Export Terminal. 
  • The thermal coal mine will be a vital source of supply for importers including power plants and industries in India and the globe. 
  • According to Adani’s subsidiary Bravus Mining, the first coal shipment from Carmichael mine is ready for export, as planned with no destination specified yet. 
  • This move for the company secures a market for almost 10 million tonnes of coal yearly, to be produced at the Carmichael mine. 
  • Back in 2010 at the time of mine purchase Adani had envisioned a future of 60-million-tonnes of coal every year.
  • However, the estimate shrank to 10 million tonnes after a sustained ‘Stop Adani’ protest by green groups that made lenders, insurers and others fearful.
  • Various analysts believe that Adani seeks to maximise cash returns and profits out of its investment, though the Carmichael mine can become unprofitable with reduced coal prices.

Why is Adani’s coal export opposed by green groups? 

  • Climate activists are always concerned about carbon emissions, but the specific risk in this case is a potential detrimental damage to Australia's famous Great Barrier Reef.
  • The mining and exports can expose the Great Barrier Reef to global warming along with several other challenges being highlighted by environmental activists before government.
  • While activists have successfully delayed the project for about seven years and made Adani adopt a local name-Bravus, victory is still not theirs. 
  • In nearly six weeks after the COP26 climate summit, where Australia agreed to phase down coal, it has opened the world's largest new coal basin in Queensland. 

Also Read- How is Australia placed on green hydrogen front 

Bravus’ road ahead - 

The initial commercial scale export shipment is kicking off from the Queensland for Adani- Bravus. In future the company plans to produce 10 million tonnes of coal every year from the controversial mine. It is targeting customers in the Asia-Pacific region and remains unaffected from continuing protests and fierce campaigning. 

Want to know- ASX Shares That Could Be Exciting Buys In 2022

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