'Unfinalised approvals' behind Adani engineering work stop
ADANI has cited unfinalised approvals as the reason behind claims the Indian mining giant told engineering contractors to stop work on projects around the Carmichael Mine in the Galilee Basin.
Queensland Mines Minister Dr Anthony Lynham's office quickly responded that to date, all state regulatory processes had been completed to schedule.
Dr Lynham's spokesperson said that included environmental impact statements for the mine and rail line and applications for a power station, two temporary workers camps, an airport, a 1700-bed permanent workers camp and quarries.
The Coordinator-General is currently assessing Adani's further application for its port facilities at Abbot Point and a number of rail-related applications.
The Guardian reported on Wednesday that industry sources said Adani had told four major engineering contractors to stop work on projects, raising speculation the company was set to abandon the $16 billion project which has been dogged by legal challenges.
Adani said for the past six to 12 months, it had maintained a level of investment, jobs and sub-contractor engagement for its projects in anticipation of finalising approvals and decisions.
"The project budget was based, understandably, on these anticipated approvals' timelines and milestones," the Adani statement said.
"As a result of changes to a range of approvals over that time, it's necessary to synchronise our budget, project timelines and spending to meet those changes.
"It is important to note we are now into the fifth year of development and approvals and therefore the need to finalise those approvals and timelines is critical."
Dr Lynham's spokesperson said the Coordinator-General would discuss any issues Adani might have on Friday at their next fortnightly meeting, including discussing the possible use of the minister's prescribed project powers where needed.
She defended the Palaszczuk Government's decision to negotiate a new area to dump dredge spoil rather than on the Caley Valley wetlands.
The Climate Council's Professor Tim Flannery, who co-authored a report suggesting the project might not go ahead, told the ABC the mine did not make financial sense because demand for coal was dwindling.
He said it would seriously impact carbon emissions globally.
The Queensland Resources Council said Queensland was on the cusp of achieving record coal exports in the financial year ending next week (June 2015).
"According to the recent BP 2015 Statistical Review of World Energy over the decade to the end of 2014, coal use grew by 968 million tonnes of oil equivalent - or four times faster than renewables, 2.8 times faster than oil and 50% faster than gas," QRC executive director Michael Roche said.
UPDATE: MP confirms rumour that Adani has stopped engineering work.
But he is confident the mining giant will not pull out of its contract.
He blamed the state government for causing the delays in approvals.
EARLIER: FEDERAL Member for Dawson George Christensen has dismissed a media report that Adani has suspended all engineering work on its multi-billion dollar Galilee Basin project in paliament today.
"The online Australian newspaper The Guardian reported today that Adani has halted engineering work on projects around the Carmichael Mine project which were being undertaken by four major engineering contractors," Mr Christensen said.
A spokesman for the Indian miner confirmed to Mr Christensen that they were not pulling out of the massive mine, rail and port project.
"Their representatives have confirmed to me that while they were not pulling out, they have lost appetite for any other substantial delays to their project," Mr Christensen said.
"They've been through two approval processes and they are onto the third, and understandably they are at the end of their tether.
"I don't want to see the hundreds of jobs for Bowen and thousands of jobs for North Queensland walk out the door with Adani.
"The State Government needs to get their approvals sorted in a matter of weeks, it cannot be months."
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