Environmentalists are lobbying banks not to offer loans to Carmichael project.
The Dollar Business Bureau
Adani Enterprise is likely to withdraw its proposal to build the $10-billion Carmichael coal mine project in Australia. This is due to the delay that the company is facing caused by multiple legal challenges by various environmental groups, the company's Chairman Gautam Adani said on Saturday. Adani expressed his disappointment to the media as the project got delayed beyond its schedule.
Australia's Queensland government had given permission for coal mining which is estimated at 11 billion tonnes. Approval was given to build roads, power lines and pipelines along with the mine. But this wasn't approved by the environmentalists who were fighting against the Govt's approval. According to them, there could be potential loss to the environment due to dredging, shipping and other climate changes stoked by coal mining. Groups of environmentalists had asked the Supreme Court of Queensland to review the government's environmental clearance given to the mine. So intense was the lobbying by the environmentalist groups that appeals were sent to banks not to offer loans to the project.
Business analysts predict that lenders too may not back this mega coal mine project due to nine-year low coal prices and uncertain demand growth.
We had earlier carried a news report of the approval given to the Adani Queensland's project. To know more about it Click here.