The Adani Group on Monday said the plans with Downer EDI Ltd to help and develop Carmichael coal mine in Australia has been canceled as they failed to secure a cheap government loan for the $16.5 billion Australian ($13 billion USD) project.
The premier of the state of Queensland said that she would veto an A$900 million loan from the federal government’s Northern Australia Infrastructure Facility (NAIF) for the construction of the mine’s rail line. Adani and Downer said they canceled all letters of awards for mine-related infrastructure.
“Following on from the NAIF veto last week, and in line with its vision to achieve the lowest quartile cost of production by ensuring flexibility and efficiencies in the supply chain, Adani has decided to develop and operate the mine on an owner-operator basis,” Adani Australia said in a statement, according to Business Line.
Banks refused to fund
The Chinese banks had ruled out of financing the project on the basis that the project would have dooming effects on the ecosystem of the area. Four Australian banks have also refused to finance the project after environmentalists protested against the implications of the same.
Bob Carr, the former New South Wales premier, and the former foreign minister told the Guardian he had been lobbying Chinese businesses and government for three weeks before receiving confirmation from the Chinese embassy in Australia that no Chinese bank would be financing the controversial project.
Environment laws fail to halt construction of the mine. The initial federal approval for the mine was overturned after it was revealed the then-minister for the environment, Greg Hunt, had ignored his own department’s advice about the mine’s impact on two vulnerable species, the yakka skink, and the ornamental snake.
But the law required the minister to only frame the advances again and with the future of the species in mind. Another court argued that the emission from the mine would be greater than that of entire New York City, which can potentially harm the Great Barrier Reef. But Hunt argued it saying that there was no relation between Adani’s coal mine and climate change.
So, the government’s will to push the project proved that the law failed to stop the mine from happening.
The company says that they will remain committed to the project, which has now been in a halt for many years. Although the four major Australian banks and the Chinese banks withdrew their support they will still make the project.
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