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Adani Coalmine Would Not Deliver Jobs and Royalties Promised, Land Court Hears

Business  (tags: Adani, Australia, Queensland, Carmichael Mine, Port Abbott, false estimates, biased assessments, court case, land court, unsustainable, Great Barrier Reef )

- 1539 days ago -
AdaniâEUR(TM)s plan for AustraliaâEUR(TM)s largest coalmine would deliver only a fraction of the jobs and state government payments promised by the company, QueenslandâEUR(TM)s land court has heard.


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Evelyn B (63)
Wednesday April 29, 2015, 7:45 am
Support the on-going struggle - if you haven't already signed!
Stop Adani Destroying Our Land and Culture - WATCH - AND SIGN - PLEASE!

Adani coalmine would not deliver jobs and royalties promised, land court hears

The economic benefits of Australia's largest mine would fall well short of the 10,000 jobs and $22bn in royalties previously forecast, an expert witness for the mining company says

Adani's plan for Australia's largest coalmine would deliver only a fraction of the jobs and state government payments promised by the company, Queensland's land court has heard.

The Carmichael mine in central Queensland and the related Abbot Point coal port would generate 1,464 jobs and up to $4.8bn in royalties, an expert economic witness for Adani has told the court.

The figures are a far cry from the 10,000 jobs and $22bn Adani has used in seeking government approval for the mine and a public relations campaign aimed at negating public opposition over its impact on the Great Barrier Reef through shipping and emissions.

The company’s projections were endorsed as recently as last week by the new state Labor government in justifying its qualified support of the mine.

The new figures were revealed on Monday during a cross-examination of Adani witness Jerome Fahrer by barrister Saul Holt for the conservation group Coast and Country.

The conservationists have gone to the land court seeking it recommend refusal of Adani’s applications for an environmental approval and a mining lease for Carmichael.

Fahrer, an economic consultant commissioned by Adani to model the outputs of its proposed 30-year coalmine, told the court that state royalties to Queensland would range from $3.7bn to $4.8bn when discounting for inflation.

His modelling also shows a total of 1,464 jobs, which includes related indirect jobs generated by the mine, over 30 years.

Adani’s TV advertisements referred to “10,000 jobs (and) $22bn in royalties and taxes invested back into Queensland communities”.

The company’s Australian website referred to the project “generating around $22bn in state mining taxes and royalties”.

Adani’s financial controller Gupta Rajesh told the court last Friday the $22bn, the result of separate modelling 18 months ago, would include company income tax paid to the federal government.

Rajesh then accepted that Fahrer’s more recent independent modelling using numbers provided by Adani showed that state royalties and income tax together would amount to just $16.8bn.

He said he was “not at the moment” able to explain the difference in Fahrer’s projected royalties of $7.845bn before inflation and a figure offered by Llewellyn Lezar from Adani’s finance department of US$14.19bn, also before inflation.

A spokesman for Adani said the company stood by its “commitment to deliver $22bn in taxes and royalties for Queensland”.

The spokesman also claimed the “full context of Dr Fahrer’s modelling and its assumptions have not been disclosed”.

“The land court process relates to the economic benefits of the mine at Carmichael – it does not envisage the combined tax and royalty, direct and indirect, construction and operational job benefits of Adani’s mine, rail and port projects,” he said.

“The experts are asked to consider the subject matter before the court – which is specific to the mine.

“One such independent witness was asked to quantify the full time equivalent job benefits of the mine, while assuming lower than the projected full production.”

A spokesman for Coast and County, Derec Davies, said the fact it took legal action from conservationists to establish that the company had “grossly inflated” the purported economic benefits highlighted a “huge problem” with government scrutiny of mining proposals.

Davies called on the premier, Annastacia Palaszczuk, and the mining minister, Anthony Lynham, to reconsider their support of the mine in light of the “first non-company figures” to put the benefits of the mine in context.

“The unfortunate reality is that these figures are only coming to light now, the problem being that when the state government was making its assessment through the co-ordinator general, it was only able to rely on numbers provided by the company,” Davies told Guardian Australia.

“It’s highly problematic that we don’t have government agencies that undertake and scrutinise this work and it’s really reliant on organisations or landholders or companies impacted by the proposed development to have to undertake this themselves.”

Davies told Guardian Australia the “real problems” with the mining assessment process stemmed from legislative "architecture" put in place decades ago by the Bjelke-Petersen government through the State Development and Public Works Organisation Act.

This led to the state development department assessing environmental issues around projects instead of the environmental department, he said.

Barbara Tomlinson (431)
Wednesday April 29, 2015, 9:19 am
This can bear being repeated OFTEN:

82% of Fossil Fuel Reserves must be LEFT IN THE GROUND - 82%! -
if we are to avert Climate CATASTROPHE due to Global Warming.

NO MORE drilling, coal mining, fracking,
and transporting, leaking and spilling and exploding,
and BURNING and spewing into the Atmosphere.
NO MORE exploration for new sources!

This should be Environmentalists' MANTRA:

Leave the OIL in the SOIL
Leave the Coal in the Hole
Leave the Tar Sands in the Land!

Jim Ven (0)
Thursday April 30, 2015, 4:07 am
thanks for the article.

Angelika R (143)
Thursday April 30, 2015, 7:31 am
Thx Evelyn! where have we heard that before... sounds much like "xx jobs for KXL " lol- they have to lie each time trying to deceive the public. Hope the whole project dies down ASAP !

Angelika R (143)
Thursday April 30, 2015, 7:35 am
Gladdly signed that petition, of course, thx.

Darren Woolsey (218)
Saturday May 2, 2015, 2:52 pm
Noted, signed the petitions and shared them.
Thanks Evelyn.

john prini (5)
Monday June 13, 2016, 2:17 am
COAL is a DiNOSAUR Technology, in 2016 we have COME SO FAR & NO NEED to MINE COAL for ENERGY, these GREEDY FOOLS who WANT TO SELL COAL NOW before the ARSE DROPS OUT of the PRICE should be MADE to CONVERT the PoRFITS TAKEN from COAL into RENEWABLES or PiSS RIGHT OFF! thx for post
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