Adani’s finch plan is approved, just weeks after being sent back to the drawing board


Stephen Garnett, Charles Darwin University; Brendan Wintle, University of Melbourne; David Lindenmayer, Australian National University; Don Franklin, Charles Darwin University, and John Woinarski, Charles Darwin University

The Queensland government has ticked off a crucial environmental approval for Adani’s Carmichael coalmine, bringing the contentious project a step closer to becoming reality.

It has approved Adani’s proposed management plan for the endangered black-throated finch, less than a month after the state’s environment department announced a delay in approval because the plan was judged to be inadequate.




Read more:
Why Adani’s finch plan was rejected, and what comes next


Four days after the May 18 federal election, in which the mine’s future was a prominent issue, Queensland Premier Annastacia Palaszczuk called for an end to the delays and uncertainty.

In a statement issued today, the government said it has now approved a “strengthened” version of the plan, submitted by Adani earlier this week.

Under the revised plan, Adani has now committed to:

  • “establish enhanced understanding” of the finch, with the help of “appropriate population studies”

  • implement “appropriate monitoring protocols” to track the finch’s population over time

  • restrict grazing in nearby areas.

The only remaining state environmental approval for the project now is Adani’s groundwater management plan, on which a decision is due by June 13.

Bad plan caused the delays

As members of the scientific panel that reviewed the finch management plan, we can understand the Premier’s frustration. There is no excuse for such a poor plan to have been put forward for approval when the company has been aware for almost a decade that the land it wants to mine is home to the largest known remaining population of the black-throated finch.

There has already been ample time to undertake the studies Adani has pledged to carry out in the future. Had it done so before now, it could have put its claims to be able to manage the finch’s extinction risk on a much more solid footing.

As it is, the plan we reviewed made biologically improbable assumptions about the finch, while ignoring what is known about the finch’s precipitous decline so far. Under the plan, people with the curious title of “fauna spotter-catchers” were to find finches and move them “to suitable habitat adjacent to the disturbance, if practical” before the habitat is destroyed.

It sounds impractical, and will in all likelihood prove to be so. If the adjacent habitat already has finches, it is likely to be “full” and so won’t be able to support mining refugees. If it lacks finches, there is probably a very good reason.

The finch has been observed only a handful of times in just a tiny proportion of the area purchased for conservation purposes near the mine site. The finch has had more than 10,000 years to occupy and breed in the proposed conservation area that is supposed to offset the impact of the mine. It hasn’t, and it probably won’t.

As far as can be determined by overlaying the available maps, the proposed conservation area has a different geology and soil type. Adani has categorically failed to provide robust scientific evidence to demonstrate that the conservation reserve will adequately offset the loss of the finches and the habitat in the mined area. It has had more than 10 years to conduct the science to provide the evidence.



Meanwhile, before the existing habitat is mined, the plan had talked about grazing being used to control bushfire fuel loads and reduce the abundance of a weed called buffel grass. Yet grazing is thought to be the main reason the finches have disappeared from most of their once vast range – they once occurred from the Atherton tablelands to northern New South Wales.

The new plan is said to “restrict grazing” but no details are yet available. Under the original plan, the cattle would have got fat on the buffel grass pastures just as they did in all the places where the finch once lived.

Rigorous research

What must really frustrate the Queensland Premier is the contrast between Adani’s efforts with the black-throated finch and the much more rigorous work done by mining companies who find themselves in similar situations. Rio Tinto, for example, is currently funding high-quality research on two other birds, the palm cockatoo and red goshawk, ahead of its planned expansion of bauxite operations on Cape York Peninsula.

Vista Gold, meanwhile, funded research on stress levels in Gouldian finches long before mining was planned to begin at its Mt Todd goldmine in the Northern Territory.

In criticising Adani’s plan, we are not criticising mining. Like all Australians, we use the products of mining every day. We enjoy a high standard of living that is delivered partly by royalties from mining. We also understand that miners (and politicians) in Queensland want to see jobs created.

Most mining companies, however, provide jobs while willingly abiding by national and state legislation. They compromise where necessary to minimise environmental harm. And crucially, they commission research to demonstrate how they can mitigate damage well before that damage occurs, rather than when their operations are already underway.




Read more:
Does ‘offsetting’ work to make up for habitat lost to mining?


In contrast, the so-called research and monitoring that went into Adani’s finch plan seems only to conclude that more research is needed. After nine years, Adani did not even know the population size of the finch, how it moves around the landscape, or even what it eats.

Given the time available, this bird could (and should) have been among the best-studied in Australia. The management plan could then have been based on robust evidence that would show how best to safeguard the finch population.

Now the research and monitoring is a hurried add-on with no proof that the threat posed to the finch can actually be solved and an extinction averted. Given the high stakes involved, Australians might reasonably have expected something altogether more rigorous.The Conversation

Stephen Garnett, Professor of Conservation and Sustainable Livelihoods, Charles Darwin University; Brendan Wintle, Professor Conservation Ecology, University of Melbourne; David Lindenmayer, Professor, The Fenner School of Environment and Society, Australian National University; Don Franklin, Adjunct Research Fellow, Research Institute for Environment and Livelihoods, Charles Darwin University, and John Woinarski, Professor (conservation biology), Charles Darwin University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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With the LNP returned to power, is there anything left in Adani’s way?


Samantha Hepburn, Deakin University

After months of “start” and “stop” Adani campaigning, the coalmine is poised to go ahead following the surprise success of the Coalition government at the federal election.

So is anything still stopping the coalmine from being built?

Australia has a federal system of government, but states own coal. This means the Queensland Labor government is responsible for issuing the Adani mining licence.

And there are suggestions pressure is mounting in the state Labor party for the final approvals to be passed.

Strategists have argued the state government must approve the Adani mine if they are to be re-elected next year. One of the reasons Labor lost votes in Queensland may have been because of perceived delays in the approval process by the Queensland Department of Environment and Science.




Read more:
View from The Hill: It’s the internal agitators who are bugging Scott Morrison on Adani


Now, Queensland premier Annastacia Palaszczuk has appointed her coordinator-general to oversee the remaining approvals. In a press conference, she said:

I think that the community is fed up with the processes, I know I’m fed up with the processes, I know my local members are fed up with the processes … We need some certainty and we need some timeframes — enough is enough.

But what has “delayed” the state government so far is its legal duty to make sure the coalmine has an effective plan to manage matters of environmental significance.

Before the election, the federal government already approved two controversial environmental plans – the groundwater management plan and the finch management plan. The only thing left now is for the Queensland Labor government to give its nod of approval.



Not ‘delay tactics’, but a legal duty

The federal government does not have jurisdiction over state resources unless the project impacts matters of national environmental significance.

And the Adani mine is one such project. The mine would remove the habitat of an endangered species and significantly impact vital underground water resources.

This means the project needed to be referred to the federal government.

The aim of this referral was to make sure the environmental assessment process would sufficiently prevent or reduce irreparable damage to the environment.




Read more:
Traditional owners still stand in Adani’s way


Generally, in a bilateral arrangement, the federal government authorises the state to conduct an environmental assessment. And this is the framework that has informed the Adani project from the outset.

This is our rule of law, and one that’s in the public interest.

So any suggestion the Queensland government engaged in “delay tactics” when they were carrying out these critical legal responsibilities is inaccurate and misconceives the fundamental legal responsibilities that underlie this process.

There are two more approvals left

There are two outstanding approvals required for the environmental conditions to be satisfied: the black-throated finch environmental management plan and the groundwater environmental management plan.

The habitat of the endangered black-throated finch must be protected.
Steve Dew, CC BY

Black-throated finch

The Queensland government rejected the black-throated finch management plan submitted by Adani last month. This was because the plan did not constitute a management plan at all.

If the finch’s habitat is destroyed by the coalmine, then it’s necessary to outline how this endangered species will be relocated, and how this relocation will be managed.

But the Adani management plan does not do this. Rather than setting up a conservation area for the finch, the Adani plan proposed establishing a cow paddock, which would destroy the grass seeds vital for the survival of the finch.

Clearly this plan does not comply with the environmental condition attached to its licence.




Read more:
Why Adani’s finch plan was rejected, and what comes next


Groundwater management

The Queensland Department of Environment and Science is currently reviewing the groundwater management plan and have sought further advice from Geoscience Australia and CSIRO.

Adani must address how the mine will impact the threatened Doongmabulla Springs in the Great Artesian Basin. This involves creating a groundwater model capable of estimating how much groundwater levels will decrease when water is used to extract the coal.




Read more:
Unpacking the flaws in Adani’s water management plan


This is important because the basin is a water supply for cattle stations, irrigation, livestock and domestic usage. It also provides vital water supplies to around 200 towns, which are entitled to draw between 100 and 500 million litres of water each year.

Any impact on the underground aquifers that feed into the Great Artesian Basin would not only be devastating for the environment, but also for all the communities that rely on its water resources.

The original groundwater model submitted by Adani was not “suitable to ensure the outcomes sought by the EPBC Act conditions are met”.

It’s unclear whether Adani’s resubmitted groundwater model still under-predicted the impact because the further submissions made by Adani have not been subjected to extensive review at the federal level.

Great care needs to be taken to ensure the expert advice from CSIRO and Geoscience is properly heeded.

The mine may cause the Doongmabulla Springs to cease flowing.
Lock the Gate Alliance/Flickr, CC BY

The Adani mine is an outlier in the global coal community

The approval of the Adani coalmine comes at a time when the global community is rapidly moving away from coal.

Germany, a pioneer of the mass deployment of wind and solar power generation, announced the phaseout of its 84 coalfired plants.

Britain has just had its first week without coal-fired electricity, and this new energy mix has rapidly become the “new normal”.




Read more:
How to transition from coal: 4 lessons for Australia from around the world


But the international coal market is variable. India’s consumption is expected to rise by the end of 2023, but their aim is to reduce coal imports. And China’s coal consumption is projected to fall almost 3%, largely due to the country’s ambitious clean energy plans. What’s more, coal is in decline in the United States and across Europe generally.

The global economy is de-carbonising. As global warming accelerates and cleaner energy options gain more traction, coal will inevitably decline even further.

A hasty post-election approval of the outstanding environmental plans for Adani coalmine would not only conflict with our domestic legal framework, but also the broader imperatives of the international community.The Conversation

Samantha Hepburn, Director of the Centre for Energy and Natural Resources Law, Deakin Law School, Deakin University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Why Adani’s finch plan was rejected, and what comes next



The black-throated finch is on the verge of extinction.
Brian McCauley/flickr, CC BY-NC

Samantha Hepburn, Deakin University and April Reside, The University of Queensland

Adani’s plan to manage an endangered finch was rejected last week by the Queensland government, stalling progress on the Carmichael mine.

The mine would cover much of the best remaining habitat for the endangered black-throated finch. The Queensland government required Adani to commit to gathering more accurate finch population data, limit the cattle grazing in the finch conservation area and determine food availability throughout the year, before they could approve the plan.

The rejection is one of two outstanding environmental approvals required before Adani can commence work on the mine. The second is the plan to manage groundwater-dependent ecosystems, which the Queensland government has yet to come to a decision on.




Read more:
Unpacking the flaws in Adani’s water management plan


The federal government has been reported as “already approving” the finch plan. But legally, the Queensland government must determine whether the plan complies with the conditions of the environmental authority and, under the bilateral framework, the federal government must give due regard to this assessment.

What’s wrong with Adani’s plan?

Last Friday Queensland’s Department of Environment and Science decided not to approve Adani’s black-throated finch management plan because it does not fulfil certain basic requirements.

The decision is based on a detailed report from an independent expert panel.

The black-throated finch is on the verge of extinction, one of 238 threatened Australian birds.

The black-throated finch is experiencing habitat loss and degradation.
Steve Dew/flickr, CC BY



Read more:
For the first time we’ve looked at every threatened bird in Australia side-by-side


The greatest threat to the black-throated finch is habitat loss: it has disappeared from over 80% of its original range. Strong protection, and careful management, of its remaining habitat is crucial.

The finch, once found across north-eastern Australia, is now largely found on Moray Downs and surrounding properties, north-west of Clermont in central Queensland. A core part of the habitat is within the 28,000 hectare (ha) footprint of the Carmichael mine, where there are far more black finches than elsewhere due to the intact woodlands and a history of minimal livestock grazing.

It is expected the mines will disturb 50,977 ha of black-throated finch habitat, and that 34,156 ha will be completely cleared.

A total of 87 square kilometres of habitat will be destroyed through the creation of open pits, and a further 61 square kilometres may be degraded beyond repair due to the influence of underground mining on groundwater.

After habitat loss, the second greatest threat to the finch is cattle grazing, which destroys the grass seeds they need to survive. Yet Adani’s management plan for the black-throated finch involved grazing cattle on areas that are supposed to be devoted to conservation of the finch.

Instead of establishing a finch conservation reserve, the Adani plan proposed what was in effect a paddock. Providing a species management plan that effectively conserves finch habitat is a core condition of Adani’s mining licence.

State vs federal priorities

The Queensland government’s rejection of the plan brings into stark focus some of the problems with the existing environmental assessment framework.

The Adani plan includes cattle grazing, despite the threat to finch habitats.
Shutterstock

The environmental authority for the mining licence was approved by the Federal government. The environmental management plan for the finch did not, however, address core impact concerns. And yet this is the very reason that the plan was required from the outset. The inadequacies of the plan only became apparent because of the oversight of the Queensland government.

The federal government has not been proactive despite’s its mandate under our National environment act – the Environmental Protection Biodiversity Conservation act. In fact, a recent analysis found the federal government has approved hundreds of projects to clear black-throated finch habitat over the last 18 years.




Read more:
Death by 775 cuts: how conservation law is failing the black-throated finch


There are clearly differences in priorities regarding the environment between a federal Liberal and a state Labor government. However, environmental assessment can only be effective if is not undermined by political agendas, and is grounded in scientific rigour and scrutiny.

A one-stop shop

At the federal level, any project likely to have a “significant impact” on a matter protected by the Environment Protection and Biodiversity Conservation Act must be referred to the federal environment minister.

If the minister decides the project impacts a matter of national environmental significance, he or she will then determine how to assess that project at the national level. Legislated options include: an environmental impact statement, a public environment report and public inquiry.

The federal government has entered into bilateral agreements with all state and territory governments. As a result, rather than the state and federal governments conducting separate assessment, the aim is to promote a single, focused environmental evaluation.

The Queensland government has entered into a bilateral assessment agreement with the Commonwealth government for Adani’s coal project, which effectively allows it to make an environmental assessment that the Commonwealth Minister will then take account of when deciding whether to grant approval.

This means that both the Queensland and the federal government are involved in the approval and assessment process environmental authorities and conditions, one of those being the management plan for the black-throated finch. In order to optimise outcomes they need to work together collaboratively.

Where to next?

The rejection means that Adani will now need to submit a new or revised plan that addresses the Queensland government’s concerns. In particular, Adani will need to limit cattle grazing in the conservation area, and gather more information regarding the availability of seed throughout the year.

This may take time but is critical, because in its current form, the plan does not meet the legal requirements for the Environmental Authority, which means that it cannot be approved at the state level.

Without state approval the Adani coal mine cannot proceed. The Queensland government has rigorously assessed Adani’s management plan by commissioning a report by an independent expert panel and then acting on the advice of this report.

This robust approach is crucial to the whole framework of environmental assessment. Genuine commitment to protecting endangered species and managing vital groundwater resources is vital if we want to reverse Australia’s dire trajectory of environmental decline.The Conversation

Samantha Hepburn, Director of the Centre for Energy and Natural Resources Law, Deakin Law School, Deakin University and April Reside, Researcher, Centre for Biodiversity and Conservation Science, The University of Queensland

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Unpacking the flaws in Adani’s water management plan


Matthew Currell, RMIT University and Adrian Werner, Flinders University

Adani’s groundwater dependent ecosystem management plan for its proposed Carmichael coal mine was recently approved by federal Environment Minister Melissa Price, despite a review from CSIRO and Geoscience Australia that points out major problems with the modelling.

According to the minister, approval was granted only after the company made commitments to fully address these issues (a claim later called into question).




Read more:
Morrison government approves next step towards Adani coal mine


However, when we look closely at the flaws in Adani’s plan it’s not clear they can credibly be remedied. There’s a very real chance the mine could cause irreversible harm to the nationally significant Doongmabulla Springs.

What a groundwater model is supposed to do

The primary purpose of the model – as is the case for most groundwater models used in mining impact studies – is to determine the likely effect of mining on groundwater levels and flows of water to and from key areas.

One important goal of the model is to estimate the drawdown (decrease in groundwater levels) in aquifers around the mine as it pumps water and digs through aquifers to reach the coal.

Drawdown may cause groundwater levels to decline below thresholds critical to the function of whole ecosystems, such as (in this case) the Doongmabulla Springs.

Groundwater models can also be used to assess changes in flows of water to and from springs and streams, such as the Carmichael River, which crosses the mine site.

What flaws in Adani’s modelling were identified?

CSIRO and Geoscience Australia’s review pointed out three major flaws:

1. Over-prediction of flow from the Carmichael River to groundwater

Groundwater and surface water are intimately connected in the water cycle. For example, in some areas surface water can “recharge” aquifers, while in others aquifers provide water that keeps rivers flowing.

According to the review, Adani has overestimated how much water would flow from the Carmichael River into the aquifers below. This means there is in reality less water available to replenish the groundwater system below the river, which in turn means that the mine will likely cause greater groundwater drawdown than predicted.

2. The hydraulic parameters chosen for key geological units

A fundamental part of any groundwater model is the hydraulic properties selected for each geological layer through which groundwater moves. The most important is hydraulic conductivity: a measure of how much water can be transmitted through an aquifer over time. The review found that Adani’s model uses hydraulic conductivity values significantly different from the values estimated by previous testing of the geological layers at the mine site.

For example, Adani’s model assigned one key layer (the Rewan Formation) much lower hydraulic conductivity values than actually indicated when consultants tested this layer.

This is critically important, as it is the main layer separating the coals that will be mined from shallower aquifers. CSIRO and GA’s conclusion was that this also caused the model to predict less drawdown at the Doongmabulla Springs than is likely in reality.




Read more:
Traditional owners still stand in Adani’s way


3. Bore heights used to calibrate the model were incorrect

According to the Australian Groundwater Modelling Guidelines, groundwater models should be calibrated. This involves comparing predictions made by the model with already measured water levels and other field data.

Calibration fine-tunes models, ensuring they are capable of replicating known behaviour, before predicting future behaviour. Correcting errors identified in the heights of some bores used in the model resulted in a lower overall match between modelled and observed water levels from the site.

The Carmichael River will be affected by Adani’s mine.
Lock The Gate Alliance/flickr, CC BY

Significance of these issues

These flaws are of major significance. If the model is corrected to address them, the review points out that the drawdown at the Doongmabulla Springs will in all likelihood be higher than required under Adani’s federal approval conditions.

We have published peer-reviewed science pointing out additional problems, which the review also noted.

A key uncertainty yet to be resolved is determining the predominant aquifers contributing water flow to the Doongmabulla Springs. It’s possible there exists a deeper source aquifer (rather than, or in addition to, the aquifer assumed by Adani). This has further implications for the level of impact the mine will have on the springs, and the effectiveness of the proposed monitoring program.

Adani was not required to address these problems prior to federal approval of its groundwater plans and is not required to do so until two years after mining activity begins (although, the Queensland government may yet require this).

This raises questions about the environmental approvals process, which currently allows major scientific issues to remain unresolved. Prior to approval, there are opportunities for scrutiny of a project’s impacts, which can result in major project modifications, strict operating conditions or even (in rare cases) rejection. Following approval, opportunities for independent scientific and public input and further modifications are far more limited.

‘Adaptive management’ will not protect the Doongmabulla Springs

In the decision reached by the Queensland Land Court following an objection to the mine in 2014-15, significant uncertainty about its future impacts was recognised. However, it was concluded “adaptive management” would nonetheless safeguard the Doongmabulla Springs. This argument was also the basis for federal approval under the then environment minister, Greg Hunt.

But what is “adaptive management” and can it be meaningfully used here? We would argue no.

The mine may cause the Doongmabulla Springs to cease flowing.
Lock The Gate Alliance/flickr, CC BY

Adaptive management is essentially when a company commits to flexibly changing its approach as it learns more about the environmental impact of its activities.




Read more:
Why does the Carmichael coal mine need to use so much water?


However, there is a significant risk that the mine may cause the Doongmabulla Springs to irreversibly cease flowing. Adaptive management, as the US Department of the Interior points out, cannot be used if decisions cannot be meaningfully revisited and modified.

Indeed, Adani has not defined substantive corrective measures for reversing future spring-flow impacts from mining – an essential element of adaptive management. It’s critical Adani puts forward its plan for dealing with these very real risks. Without a credible plan, regulators cannot hope to make an informed decision about the risk the mine poses to the Doongmabulla Springs.The Conversation

Matthew Currell, Associate Professor in Environmental Engineering, School of Engineering, RMIT University and Adrian Werner, Professor of Hydrogeology, Flinders University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Nothing but truthiness: Adani and Co’s post-truth push for the Carmichael mine


Benedetta Brevini, University of Sydney and Terry Woronov, University of Sydney

This article is part of an ongoing series from the Post-Truth Initiative, a Strategic Research Excellence Initiative at the University of Sydney. The series examines today’s post-truth problem in public discourse: the thriving economy of lies, bullshit and propaganda that threatens rational discourse and policy.

The project brings together scholars of media and communications, government and international relations, physics, philosophy, linguistics and medicine, and is affiliated with the Sydney Social Sciences and Humanities Advanced Research Centre (SSSHARC), the Sydney Environment Instituteand the Sydney Democracy Network.


“Post-truth”, defined as “relating to or denoting circumstances in which objective facts are less influential in shaping public opinion than appeals to emotion and personal belief”, was the Oxford Dictionary’s 2016 Word of the Year, selected as a hallmark of the times in the US and UK. (Macquarie Dictionary chose “fake news” as its 2016 Word of the Year.)

Yet post-truth politics and “truthiness”, a term Stephen Colbert coined in 2005, are not solely British and American phenomena. “Truthiness” is rampant in Australia too. The debate about the proposed Adani Carmichael mine in central Queensland shows how truthiness has become part of Australian political discourse.

How can a coal mine be subject to a regime of “truthiness”? A decision to build a greenfield megamine would appear to come down to the facts, with the known harms weighed against the potential benefits. Yet we can identify three distinct traits in official discourses around the Adani mine that show truthiness at work.

Appeal to emotion and ‘gut feelings’

First, “truthiness” replaces a reliance on facts with appeals to emotion and a logic of “gut feelings”.

One of the champions of this form of logic is Tony Abbott. As prime minister, he faced criticism from environmentalists after opening a coal mine and declaring:

Coal is good for humanity, coal is good for prosperity, coal is an essential part of our economic future, here in Australia, and right around the world.

Earlier in 2014, he had said that “it is our destiny in this country to bring affordable energy to the world”.

In addition to the feel-good narrative of coal as national saviour, politicians have argued that Australia’s coal will help the world solve environmental problems, rather than making them worse.

An excellent example of this reasoning comes again from the former prime minister on his visit to India in September 2014. There, echoing the Adani chief executive, Abbott argued that the Carmichael mine could improve Indian living standards and cut carbon emissions by providing “clean coal”.

Using this same emotional logic, the government later told parliament that opening the southern hemisphere’s largest coalmine would actually cut carbon pollution.

Create doubt about facts – or make them up

A second component of “truthiness” is the practice of deliberately presenting empirical facts as debatable, uncertain or political – or simply lying. The best examples of lying are the claims of the mine’s benefits to Queensland and Australia.

Most common are references to the number of jobs the Carmichael mine will provide to the Queensland economy, where the employment situation is portrayed as desperate.

For instance, Queensland federal MP Michelle Landry claimed:

The Adani Carmichael coalmine offers up to 10,000 new jobs, mainly in Queensland; A$20 billion of investment in Australia; and power, to build the living standards of 100 million people in India.

In fact, Jerome Fahrer, who prepared an economic assessment of the Carmichael mine for Adani, admitted in court that it will create an average of 1,464 direct and indirect jobs over the life of the project. Yet virtually every mine supporter has since 2014 repeated an incorrect figure of 10,000 new jobs. They include the prime minister, the attorney-general and federal and state Liberal and National Party MPs.

Another prominent tactic used to cast unwanted facts as debatable or doubtful is to generate oxymorons that promote contradictory messages.

Mining corporations in Australia – and globally – use the term “sustainable mining” to describe projects that provide jobs. Politicians have adopted this; Anthony Lynham, Queensland’s minister for natural resources and mines, declared:

This government strongly supports the sustainable development of the Galilee Basin for the jobs and economic development that it will provide for regional Queensland.

Perhaps the most pernicious oxymoron used by mine supporters is “clean coal”. To counter the claim that Galilee Basin coal is “clean”, The Australia Institute cites estimates by Adani and India’s Ministry of Coal that it “is only 10% above the average quality of domestic Indian thermal coal in terms of energy content”. This is because “the ash content of Carmichael coal is estimated to be 26% – more than double the average of 12% for Australian thermal coal”.

The institute also notes that transporting the coal inevitably creates extra pollution.

Smear without evidence

Third, to construct truthiness, statements that are not scientific, logical or fact-based have proliferated in the political debate about the Adani mine. Politicians have constantly reframed the term “activist” to connote an enemy of both the mine and the national interest. MPs have called members of green groups economic saboteurs, “vigilantes”, “terrorists” and “extremists”.

This narrative casts environmentalists not only as economic enemies of Australia, but opposition to the mine as a form of terrorism. In parliament, Queensland LNP MP George Christensen described legal action to stop the mine as “an act of ecoterrorism”. He continued:

Their lies, misinformation, slander and the frivolous legal action attacking a company for the sake of furthering an ideological cause can only be described as terrorism if you look at the criminal code.

The accusations of “eco-terrorism” and “sabotage” had no foundation in fact whatsoever. These claims were not linked to actual illegal activities by environmental groups opposed to the mine.

Queensland Premier Annastacia Palaszczuk summarised perhaps the most pernicious claim by mine proponents when she told parliament:

Queensland taxpayers will not be funding any infrastructure for this project. Stringent conditions will be enforced to safeguard landholders’ and traditional owners’ interests.

To keep Queensland taxpayers from funding the mine’s infrastructure, the burden will fall instead on Australian taxpayers via the Commonwealth government’s proposed $1 billion loan from the Northern Australia Infrastructure Facility to Adani. This will fund rail lines from the mine to the coast.

Nor have the rights of the traditional owners of the mine site been respected or upheld. The state and federal governments and courts have denied all legal challenges from the Aboriginal people most affected by it.

The primary purpose of dissecting the arguments in favour of the Carmichael mine is to demonstrate the complexity of “truthiness” regimes. None of these discursive forms – gut feelings, spin and the politicisation of unwanted facts, or even outright lies – are enough on their own. Rather, these strategies overlap, intersect and reinforce each other.

The effect is to create an overarching “truthiness” regime that presents new megamines as desirable, inevitable and essential to maintain Australia’s national destiny. In response, a more complex and multi-pronged approach will be needed to convince the voting public that coal mining is not good for Australia, its economy, or the globe.


The ConversationYou can read other articles in the series here.

Benedetta Brevini, Senior Lecturer in Communication and Media, University of Sydney and Terry Woronov, Senior Lecturer in Anthropology, University of Sydney

This article was originally published on The Conversation. Read the original article.

Why are we still pursuing the Adani Carmichael mine?


Michael West, University of Sydney

Why, if Adani’s gigantic Carmichael coal project is so on-the-nose for the banks and so environmentally destructive, are the federal and Queensland governments so avid in their support of it?

Once again the absurdity of building the world’s biggest new thermal coal mine was put in stark relief on Monday evening via an ABC Four Corners investigation, Digging into Adani.


Read more: Adani gives itself the green light, but that doesn’t change the economics of coal


Where the ABC broke new ground was in exposing the sheer breadth of corruption by this Indian energy conglomerate. And its power too. The TV crew was detained and questioned in an Indian hotel for five hours by police.

It has long been the subject of high controversy that the Australian government, via the Northern Australia Infrastructure Facility (NAIF)that is still contemplating a A$1 billion subsidy for Adani’s rail line, a proposal to freight the coal from the Galilee Basin to Adani’s port at Abbot Point on the Great Barrier Reef.

But more alarming still, and Four Corners touched on this, is that the federal government is also considering using taxpayer money to finance the mine itself, not just the railway.

No investors in sight

As private banks have walked away from the project, the only way Carmichael can get finance is with the government providing guarantees to a private banking syndicate, effectively putting taxpayers on the hook for billions of dollars in project finance.

The prospect is met with the same incredulity in India as it is here in Australia:

FOUR CORNERS: “Watching on from Delhi, India’s former Environment Minister can’t believe what he is seeing.”

JAIRAM RAMESH: “Ultimately, it’s the sovereign decision of the Australian Government, the federal government and the state government.

FOUR CORNERS: “But public money is involved, and more than public money, natural resources are involved.

JAIRAM RAMESH: “I’m very, very surprised that the Australian government, uh, for whatever reason, uh, has uh, seen it fit, uh, to all along handhold Mr Adani.”

Here we have a project that does not stack up financially, and whose profits – should it make any – are destined for tax haven entities controlled privately by Adani family interests. Yet the Queensland government has shocked local farmers and environmentalists by gifting Adani extremely generous water rights, and royalties concessions to boot.

Why are Australian governments still in support?

The most plausible explanation is simply politics and political donations. There is no real-time disclosure of donations and it is relatively easy to disguise them, as there is no disclosure of the financial accounts of state and federal political parties either. Payments can be routed through opaque foundations, the various state organisations, and other vehicles.

Many Adani observers believe there must be money involved, so strident is the support for so unfeasible a project. The rich track record of Adani bribing officials in India, as detailed by Four Corners, certainly points that way. But there is little evidence of it.

In the absence of proof of any significant financial incentives however, the most compelling explanation is that neither of the major parties is prepared to be “wedged” on jobs, accused of being anti-business or anti-Queensand.

There are votes in Queensland’s north at stake. Furthermore, the fingerprints of Adani’s lobbyists are everywhere.

Adani lobbyist and Bill Shorten’s former chief of staff Cameron Milner helped run the re-election campaign of Premier Annastacia Palaszczuk. This support, according to The Australian, has been given free of charge:

Mr Milner is volunteering with the ALP while keeping his day job as director and registered lobbyist at Next Level Strategic Services, which counts among its clients Indian miner Adani…

The former ALP state secretary held meetings in April and May with Ms Palaszczuk and her chief of staff David Barbagallo to negotiate a government royalties deal for Adani, after a cabinet factional revolt threatened the state’s lar­gest mining project.

Adani therefore enjoys support and influence on both sides of politics. “Next Level Strategic Services co-director David Moore — an LNP stalwart who was Mr Newman’s chief of staff during his successful 2012 election campaign — is also expected to volunteer with the LNP campaign.”

So it is that Premier Palaszczuk persists with discredited claims that Carmichael will produce 10,000 jobs when Adani itself conceded in a court case two years ago the real jobs number would be but a fraction of that.

If the economics don’t stack up, why is Adani still pursuing the project?

The Adani group totes an enormous debt load, the seaborne thermal coal market is in structural decline as new solar capacity is now cheaper to build than new coal-fired power plants and the the government of India is committed to phasing out coal imports in the next three years.

Why flood the market with 60 million tonnes a year in new supply and further depress the price of one of this country’s key export commodities?

The answer to this question lies in the byzantine structure of the Adani companies themselves. Adani already owns the terminal at Abbot Point and it needs throughput to make it financially viable.

Both the financial structures behind the port and the proposed railway are ultimately controlled in tax havens: the Cayman Islands, the British Virgin Islands and Singapore. Even if Adani Mining and its related Indian entities upstream, Adani Enterprises and Adani Power, lose money on Carmichael, the Adani family would still benefit.


Read more: Australia’s $1 billion loan to Adani is ripe for High Court challenge


The port and rail facilities merely “clip the ticket” on the volume of coal which goes through them. The Adani family then still profits from the privately-controlled infrastructure, via tax havens, while shareholders on the Indian share market shoulder the likely losses from the project.

As the man who used to be India’s most powerful energy bureaucrat, E.A.S. Sharma, told the ABC: “My assessment is that by the time the Adani coal leaves the Australian coast the cost of it will be roughly about A$90 per tonne.

“We cannot afford that, it is so expensive.”

More questions than answers remain

This renders the whole project even more bizarre. Why would the government put Australian taxpayers on the hook for a project likely to lose billions of dollars when the only clear beneficiaries are the family of Indian billionaire Gautam Adani and his Caribbean tax havens.

The ConversationMy view is that this project is a white elephant and will not proceed. Given the commitment by our elected leaders however, it may be that some huge holes in the earth may still be dug before it falls apart.

Michael West, Adjunct Associate Professor, School of Social and Political Sciences, University of Sydney

This article was originally published on The Conversation. Read the original article.

The government is swimming against the tide on Westpac’s Adani decision


David Peetz, Griffith University and Georgina Murray, Griffith University

The Australian government’s strident criticism of Westpac for not financing the Adani Carmichael coal mine is out of step with the economics. As the cost of renewable energy falls and its adoption increases, fossil fuels are becoming a riskier investment. The Conversation

It’s not just Westpac. This shift is reflected right across the finance industry. The big four Australian banks have all declined to finance this mine, as have many large international financial institutions.

The Commonwealth Bank quit as the project’s financial adviser in August 2015. NAB ruled out financing the mine in September 2015. ANZ effectively ruled out financing in October 2015 and again, more firmly, in December 2016.

Big overseas financiers Standard Chartered, Barclays, Royal Bank of Scotland, Citi, HSBC, Morgan Stanley, Société Générale, Crédit Agricole, JP Morgan Chase, Deutche Bank and BNP Baripas have also already abandoned or made clear their lack of support for the mine.

Adani’s coal was to be used to generate electricity in India, recently seen as the future for the product given China’s shift away from coal. But Indian demand for coal is slipping. Its new National Electricity Plan has renewables rising from the current 15% to 56% of installed power capacity by 2027.

The Indian government itself now thinks it may not need any new coal power plants for at least a decade.

As mines require a huge initial investment that pays itself off over many years, this increases the risk that the Carmichael mine will become a “stranded asset”.

Shifting economics of coal

Sure, financial institutions are under pressure from customers and activists to avoid investments that damage the climate. But for these institutions, such pressures only make a difference at the margin. For them it is the poor economics of coal that is fundamental.

The long-term prospects of coal are weakened by the rapid changes in technology and the deterioration of the climate outlook.

Solar energy prices have fallen more rapidly than most expected, and battery technology and use is rapidly improving.

A recent study found that solar energy is on a trajectory to supply at least 3 terawatts (TW) of power globally by 2030, and potentially up to 10TW if certain barriers to installation can be overcome. For comparison, the world’s total electricity capacity from all sources as of 2014 was just 6TW.

Financiers’ minds may be focused still further by the fact that, if anything, scientists appear to have underestimated the effects of climate change on sea levels, polar ice caps, and methane emissions from thawing permafrost and lakes.

From short- to long-term thinking

The fact that the financial industry is reluctant to fund the Carmichael mine is just one example of the phenomenon described in a report by the Asset Owners Disclosure Project (AODP) as “a fundamental power shift … from short-termers to long-termers”.

There are several reasons for this, besides the changing economics of renewable technology, the worsening climate outlook, and the shifting policies in countries like China and India.

New tools are being developed to enable investors to quantify the impact of climate on their investments. In financial circles, the more things can be counted, the more they count.

Superannuation funds and overseas pension funds need to invest over long periods of time, and so are now forced to invest with climate change in mind. They can’t afford to have a stranded asset on their books.

Reinsurers – essentially large firms that provide insurance for insurance companies – face the same issue. They need to minimise exposure to extreme weather events, which are increasingly influenced by climate change.

Fund managers are creating financial products to enable investment in climate change adaptation. And some investors are taking more control over their investments, rather than leaving them in the hands of fund managers, so they can give appropriate priority to climate issues.

This is not to say that financiers around the world are uniformly reacting to climate issues. The AODP report shows that, on average, European and Australian asset owners and fund managers have done well in acting on climate risk, whereas American, Middle Eastern and (until now) Chinese ones have done poorly.

It’s also not true that finance has uniformly abandoned short-termism. “Climate-interested investors” currently account for just a third of the ownership of the world’s very large corporations.

But no one is going to make even short-term profits out of the Adani coal mine, with its huge upfront capital investment, unless they get a substantial subsidy from the taxpayer. And the long-term prospects look grim.

Those who argue that Westpac’s decision was “illogical” are swimming against both the financial and technological tides.

David Peetz, Professor of Employment Relations, Griffith University and Georgina Murray, Associate Professor in Humanities, Griffith University

This article was originally published on The Conversation. Read the original article.