2018/11/05

Adani's Galilee Basin rail line on track - Korean's win contract

Adani’s Galilee Basin rail line on track – Korean’s win contract

Despite the negative sentiment and complaints from all corners of Australia, the Galilee Basin project refuses to wither away and fade into oblivion.

The idea of a massive coal mine, which would have the potential to generate many thousands of jobs for Queensland is still ‘top of mind’.

It’s especially so for the companies and visionaries who have not only invested billions into developing the coal-rich Galilee Basin, but see the project coming to fruition.

One of the biggest hurdles for the project is getting the coal from deep within the Queensland interior to the ship loading ports like Abbot point.

Owing to the vast distance and fallout from angry farmers who insist their livelihoods will be trashed because of the railway corridor and subsequent construction that will take place, there has been opposition to the project.

There are a number of mining companies and joint venture partners vying for a slice of the Galilee Basin coal action. Adani, GVK and Clive Palmer’s China First mine are the main players who each seek to dig out the precious resource.

Queensland railways have never been forthcoming in developing and expanding their rail corridors to service mining companies and their remote mines.

The usual story is that mining companies are forced to invest billions of dollars in constructing their own railways. So tight is competition and ‘oneupmanship’, that each mining project would mean constructing a separate rail network. This is because mining companies fear being ‘controlled’ by another mining company who holds the exclusive rights to the rail corridor.

As with most rail network deals, the ‘take or pay’ agreements that are common right across the freight industry in Australia have created huge financial� issues for mining companies.

Take or Pay explained

What this means in simple terms is, a contract is signed for a period of time to allow a mining company to use a rail network to transport its coal to whatever destination is required. Usually this is a stock piling facility close to a major port.

Let’s stay with the Australian coal sector where take-or-pay arrangements are common in port and rail contracts and supply contracts for mining equipment and raw materials transport. These ‘take or pay’ contracts worked to guarantee minimum demand levels for rail or port facilities or equipment over long periods of time.

The effects of these ‘take or pay’ contracts are noticeable when weakening coal prices leave Australian mining companies and their customers exposed to obligations to take or pay for mining products, services and commitments they may not have a use for.

In other words, mining companies get charged for services they don’t use, but because of a contract – which could run for many years, they have to keep paying for the service and money is poured down the drain.

The result of which is catastrophic on the balance sheet and eventually affects the profitability of the company.

With each mining company owning their own rail network, the risk of such ‘take or pay’ contracts are mitigated.

$16 billion Carmichael mine

Always erring on the side of caution, Indian power and energy company Adani, which has invested billions into the Queensland coal mining industry, continues to push ahead in its resolve.

Adani is so confident of developing this new coal mine in the Gailee Basin it has signed a $.2 billion contract with Korean company Posco to construct the 388km railway line to connect the Carmichael mine to Abbot Point. Adani inferred that Posco will assist in funding the rail network by buying an equity stake in the Carmichael coal mine project.

The proposed new railway line, which is a single gauge will also join up with� an established rail network in the Bowen Basin which is located South of the Galilee Basin. Some 60 million tonnes of coal per year is expected to be transported from the mine.

Adani`s Indian billionaire owner Gautam Adani, said. “The rail project will lead to the opening of the Carmichael mine project, and will also provide vital opportunities for Australian infrastructure development and contribute to energy security of India by lighting the lives of millions of Indians”.

Carmichael mine construction timeline

Adani is still waiting final approval from the Australian federal government for its massive coal project, but made a point of acknowledging that work on the new rail corridor will begin early in 2015.

At 10 billion tonnes of high quality thermal coal under it’s grassy knolls, the Carmichael mine is considered by some to be the largest single coal tenement on the planet.

Mr Adani was also quoted as saying “the Galilee Basin Carmichael mine project will deliver in excess of 10,000 mining jobs”.

This is incredible news for the people of Queensland. Although the project is still in its infancy, people looking for a slice of the mining jobs action would be wise to start taking the project seriously and prepare for a career in the industry.

Stay up to date with developments in the Galilee Basin and be the first to learn about how the Carmichael mine project will transform people’s lives in the region. Get iMINCO Project News each week. The service is free and cancellation is as easy as the click of a mouse button.

Carmichael coal mine - Wikipedia

Carmichael coal mine - Wikipedia

Carmichael coal mine
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Carmichael coal mineLocation

Carmichael coal mine

Location about 160 km northwest of Clermont
Queensland
Country Australia
Coordinates

22°08′S 146°27′E Coordinates:

22°08′S 146°27′E
Production
Products Thermal coal
Type Open-pit, underground
Owner
Company Adani Group

The Carmichael coal mine is a proposed thermal coal mine in the north of the Galilee Basin in Central Queensland, Australia. Mining is planned to be conducted by both open-cut and underground methods.[1] The mine is proposed by Adani Mining, a wholly owned subsidiary of India's Adani Group. The development represents a $16.5 billion investment.[2]

At peak capacity the mine would produce 60 million tonnes of coal a year, much of it "low quality, high ash".[3] In court, Adani said it expects the mine to produce 2.3 billion tonnes over 60 years.[4] It would be the largest coal mine in Australia and one of the largest in the world.[5] The mine would be the first of a number of large mines proposed for the Galilee Basin and would facilitate their development.

Exports are to leave the country via port facilities at Hay Point and Abbot Point after being transported to the coast via rail.[1] The proposal includes a new 189 km rail line to connect with the existing Goonyella railway line. Most of the exported coal is planned to be shipped to India.

The mine has drawn immense controversy about its claimed economic benefits,[6] its financial viability, plans for government subsidy and the damaging environmental impacts. Broadly, these have been described as its potential impact upon the Great Barrier Reef, groundwater at its site and its carbon emissions.[7] The emissions from burning the amount of coal expected to be produced from this one mine, whether sourced from it or elsewhere, would be "approximately 0.53-0.56% of the carbon budget that remains after 2015 to have a likely chance of not exceeding 2 degrees warming."[4]

Contents
1Location
2History
3Project size and operations
3.1Mine
3.2Rail line
3.3Port expansion
4Jobs and economic benefits
4.1Jobs
5Financing
5.1Financial viability
6Proposed government subsidies
6.1Queensland state subsidy
6.2Federal subsidy
7Environmental impacts
7.1Greenhouse gas emissions
8Local impacts
8.1Water
8.2Endangered species
8.3Bygana West Nature Refuge: endangered koala habitat
9Legal Challenges
9.1Native Title claims
9.1.1Adani Mining Pty Ltd and Another v Adrian Burragubba, Patrick Malone and Irene White on behalf of the Wangan and Jagalingou People
9.2Environmental law
9.2.1Mackay Conservation Group v Commonwealth of Australia and Adani Mining
9.2.2Adani Mining Pty Ltd v Land Services of Coast and Country Inc.
9.3Criticism of legal action
10See also
11References
Location[edit]

The mining lease mostly covers the Moray Downs cattle station.[8] The majority of the mine lies within the Isaac Region, with a small portion in the Charters Towers Region local government area.[2] Road access is made by the Gregory Developmental Road, an undeveloped section of the Gregory Highway.[8]
History[edit]

In 2010, the Queensland Premier Anna Bligh announced the Coordinator-General declared the proposed Carmichael Coal Mine and Rail Project was being assessed as a 'Significant Project'.[9] Since then proposal has gone through many changes. The operational life was originally proposed for 150 years.[10] This was later reduced to 90 years and is now proposed for 60 years.[11]

On 8 May 2014, Queensland’s Coordinator-General gave approval for the project to proceed.[12] 190 conditions were set by the state during both construction and operations phases of the mine with particular attention paid to groundwater and water bores which may be potentially affected.[12]

On the 29 July 2014, federal Minister for Environment, Greg Hunt gave approval for the mine to proceed. Federal approval was granted after 36 conditions were stipulated.[13]

Exporting coal from the Carmichael mines requires new terminals and seabed dredging at the Abbot Point coal port. In early September 2014, it was reported the plan to dump dredge spoil in the Great Barrier Reef Marine Park area had been scrapped.[14][15] The plan to dump the spoil at sea was widely criticised on the grounds that the fragile coral and seagrass ecosystem could be damaged. Documents released under Freedom of Information showed Great Barrier Reef Marine Park Authority scientists had opposed the dumping plan.[15] The Palaszczuk Queensland Government is now the development proponent for a proposal to dump dredge spoil on land within the terminal site.[16]

On 5 August 2015, the federal Department of Environment and Adani signed consent orders in the Federal Court to set aside approval of the Carmichael project.[17] The Department did not correctly follow requirements under federal environment law to consider conservation advice regarding two endangered species affected by the proposal, the yakka skink and the Ornamental Snake. This led to considerable controversy. The Department is presently reconsidering the proposal.[18]

By mid August, Adani had ceased commercial relationships with a number of engineering contractors and banks.[19]
Project size and operations[edit]
Mine[edit]

The mine is planned to contain six open-cut pits and five underground mines.[2] The surface disturbance area is 27,892 hectares (68,923 acres).[11] The mine site covers an area of 44,700 hectares (110,456 acres), around 447 square kilometres (173 sq mi), and is about 50 kilometres (31 mi) long.[20]

Operations at the mine are expected to consume 12 billion litres of water each year.[13] It is required to return only 6% of this water in the first five years.[21] The mine will take a total of 297 billion litres of water from underground aquifers.[22]

The Carmichael River runs through the middle of the mine site. Bridges and flood levees must be built before the Southern mines are constructed.[23]

In the Queensland Land and Environment Court, Adani said it expects the mine to produce 2.3 billion tonnes of coal over 60 years.[4] This implies average production of around 40 million tonnes a year. According to the current Environmental Impact Statement, the Carmichael mine would produce 60 million tonnes of coal per year (at peak capacity).[11]
Rail line[edit]

Two parallel proposals for rail lines between the Carmichael mine and port facilities were floated during the planning process.

In 2014, Adani signed an agreement with South Korean construction company POSCO to develop the North Galilee Basin Rail Project.[24] This 388 kilometres (241 mi) standard-gauge rail line would provide capacity of 100 million tonnes of coal per year, increasing access to the Galilee Basin.[25][26] Authorities suggested the line be financed by the Northern Australia Infrastructure Facility (NAIF),[27] though the Queensland provincial government rejected a funding request in November 2017.[28] In September 2018, Adani announced that it had abandoned plans to build the standard gauge line in favor of constructing a 200 kilometres (120 mi) 1,067mm line to a connection with existing narrow-gauge trackage.[26]

Queensland freight rail operator Aurizon had separate plans to develop narrow-gauge rail lines in the Galilee Basin to serve what it described as "several" entities planning mines in the area, including Carmichael, but with no firm agreements close to complete it withdrew a loan request from the NAIF in February 2018.[28]
Port expansion[edit]

The mine requires a significant expansion of port facilities. Deutsche Bank and HSBCdeclined to fund the Abbot Point port expansion due to environmental concerns affecting their reputation.[13]
Jobs and economic benefits[edit]

Announcing the federal approval for the project, Environment Minister Greg Hunt stated it would contribute $930 million to the Mackay region’s GDP and $2.97 billion to the Queensland economy each year for the next 60 years.[29] Hunt claimed the 4 billion tonnes of coal resource extracted over its lifetime would be worth $300 billion.[29] In court, Adani said the lifetime output of the mine would be 2.3 billion tonnes of coal.[4]
Jobs[edit]

Adani claims the mine will create 10,000 jobs.[30] The company took out a television advertisement during the 2015 Queensland election including this claim.[31] Former Prime Minister Tony Abbott cited the 10,000 jobs figure as evidence "this mine is good for the country".[32] In Queensland's Land Court Adani’s expert witness, economist Jerome Fahrer from ACIL Allen consulting, rejected the 10,000 figure, saying the project would create less than 1,500 jobs.[33] Fahrer described the method used to produce the 10,000 figure as 'deficient'.[34] In May 2015 a complaint was lodged with the Australian Securities Exchangealleging Adani was providing misleading information about the project.[35] The CEO of Mine Operations, JJ Jakanaraj stated "We will be utilizing at least 45, 400-tonne driverless trucks. All the vehicles will be capable of automation. When we ramp up the mine, everything will be autonomous from mine to port. In our eyes, this is the mine of the future"[36]
Financing[edit]

The Government-owned State Bank of India has signed a MOU with Adani that it will offer a $1 billion loan to the project. It was widely reported that the Bank had withdrawn this offer.[37] This was rejected by the bank’s Chairman.[38]

A number of major international banks have publicly ruled out financing the Carmichael Mine and Rail Project, or the Abbot Point Coal Terminal on which the Carmichael project depends. This includes more than half of the top 20 coal financing banks globally.[39]Banks currently ruling out funding include: Citigroup; JP Morgan Chase; Goldman Sachs; Deutsche Bank; Royal Bank of Scotland; HSBC; Barclays; BNP Paribas; Credit Agricole; Societe Generale; National Australia Bank. Adani spokespeople have said statements from banks they have not approached have “no bearing” on the project.[40] Standard Chartered was previously involved in providing financing to the project. Adani has ended the bank’s advisory contract.[41]

Large coal projects in Australia typically engage with one or more of the ‘big four’ Australian banks in arranging or providing debt. On 5 August 2015, Commonwealth Bankannounced that its advisory contract with Adani had ended[42], nonetheless have not ruled out funding Adani and are viewed as the most likely local backer[43]. On 3 September 2015, National Australia Bank announced it would not fund the project[44]. On 28 April 2017, Westpac announced it would not fund the project[45]. Whilst the remaining bank - ANZ - has not explicitly ruled out funding, they have distanced themselves from Adani and announced a strategic shift away from Coal [46].

Environment groups have pursued campaigns to pressure banks to rule out funding the project. Some have encouraged customers to switch bank accounts and mortgages away from the large banks funding coal projects.[47]
Financial viability[edit]

Analysts doubt the mine is viable given current seaborne (imported) thermal coal prices and market trends. In November 2013 Morgan Stanley valued the mine at $0 and said

“While the company expects the environmental clearance to come through in F2H14, it does not plan to spend money on developing the mine until coal prices rise from current levels”.[48]

In November 2014 Daniel Morgan, global commodities analyst at investment bank UBS, said

"On a standalone basis, the economics just don't stack up – I'm talking about costs and return on capital. You'd need a price of about $100-$110 a tonne for it to stack up".[49]

Seaborne thermal coal prices (Newcastle benchmark) have dropped from highs of around US$140/t in 2012 to around US$60/t in 2015 is due to increases in production and reduction in seaborne coal demand.[50]

In September 2015, UBS said in a briefing note "no new coal mines needed on 5+ year view" and projected prices recovering to $88/t by 2019—still below the required price for Carmichael.[50]

Tim Buckley, director of energy finance studies Australasia at the Institute of Energy Economics and Financial Analysis, argues that the Carmichael mine is a 'stranded asset'.[51] Buckley cites a range of factors including: structural decline in seaborne coal markets; Adani's already high debt gearing; difficulty raising capital, a recent company restructure; approval delays.

Documents from Queensland Treasury released under Freedom of Information showed senior officials advising Ministers that Carmichael "is unlikely to stack up on a conventional project finance assessment".[52]

Most of the coal from the mine would be purchased by Adani in India. LG has announced it will not proceed with a contract to buy coal from the mine.[53]
Proposed government subsidies[edit]

The Queensland and Australian Governments have proposed various forms of assistance to the project. This is despite the G20 commitment to phase out "inefficient" fossil fuel subsidies.
Queensland state subsidy[edit]

Queensland Government budget papers show spending of $9.5 billion between 2008 and 2014 assisting the mining industry.[54] Queensland Treasury wrote in a submission to the Commonwealth Grants Commission:

Governments face budget constraints and spending on mining-related infrastructure means less infrastructure spending in other areas, including social infrastructure such as hospitals and schools.[55]

The Newman Queensland Government initially claimed it would not support the Carmichael project. But in 2014 it proposed a "royalty holiday" or reduced royalty rates,[56]as well as proposing to "co-invest" in infrastructure.[57] The Labor Opposition criticised this as a "blank cheque".[58] Treasurer Jeff Seeney argued

“The Queensland government, like governments across the world, have always provided some major incentives and the incentive we have decided to provide relates to infrastructure rather than the traditional handing out of grants.”

During the 2015 Queensland election, the Labor Opposition promised not to fund the rail project linking the mine to the port.[59] Since Labor's election victory, the new Queensland Treasurer confirmed the government will not fund the rail line but did not rule out other forms of support such as a royalty holiday.[60] Premier Palaszczuk said she is "absolutely committed" to the project going ahead and called for federal funding for the rail line.[61]
Federal subsidy[edit]

The 2015-16 Federal Budget outlined the $5 billion Northern Australia Infrastructure Facility "to provide large concessional loans for the construction of ports, pipelines, electricity and water infrastructure that will open our northern frontier for business."[62][63]The website states "The Commonwealth will not lend to projects that are commercially viable without Government assistance."[64] It is reported the Abbott government is considering using this fund to ensure the Carmichael rail line is built.[65]
Environmental impacts[edit]
Greenhouse gas emissions[edit]

According to the mine’s environmental impact statement it will produce 200 million tonnes of carbon dioxide over the expected 60-year life of the mine.[66] This includes gases produced during the mining process and from emissions created from the mining and transportation of the coal.

The burning of that coal has been estimated to produce another 130 million tonnes of carbon dioxide every year.[66]

In court, Adani claimed it expected the mine to produce 2.3 billion tonnes of coal over 60 years, averaging to just under 40 million tonnes of coal a year, equivalent to 4.7 billion tonnes of carbon dioxide.[4] This is "approximately 0.53-0.56% of the carbon budget that remains after 2015 to have a likely chance of not exceeding 2 degrees warming."[4]

A Greenpeace report showed the output from Carmichael would exceed the yearly carbon dioxide emissions from fuel combustion in many countries.[67][not in citation given]
Region/Country/Economy 2009 CO2 emissions from fuel combustion (million tonnes)[ambiguous]
Carmichael Coal Mine (peak production 60mtpa) 128
Vietnam 114
Belgium 101
Carmichael Coal Mine (production claimed in court, average 40mtpa) 85
Philippines 71
Austria 63
Qatar 57
Finland 55
Hungary 48
Denmark 47
Switzerland 42
Sweden 42
Norway 37

Local impacts[edit]
Water[edit]

Adani has applied for a water licence to extract up to 12.5 GL per year from the Belyando River for use at the Carmichael mine.[68] The mine will also use groundwater that flows to the surface during the process of “dewatering” the open cut pits and underground mines.

According to the Supplementary Environmental Impact Statement (SEIS) submitted by Adani, “maximum impacts in excess of 300m are predicted” for the local water table. Beyond the mine boundary, Adani’s groundwater model predicts water table levels to drop “typically between 20 and 50m” and “up to around 4m in the vicinity of the [Carmichael] river”.[69] Impacts on ground water were central to a case in the QLD Land Court, where Adani's expert witness defended inferences drawn from drilling data, against allegations that this was insufficient to determine risks of collapses underground that could impact groundwater systems.[70]
Endangered species[edit]

The mine site area is home to a number of threatened species, including the yakka skink, ornamental snake, and the waxy cabbage palm. Moray Downs, which is covered by the mine site, is home to the largest known community of black throated finches [71] . The finches' population is in decline, and the southern subspecies is threatened.
Bygana West Nature Refuge: endangered koala habitat[edit]

The Carmichael project's open-cut mine most of the Bygana West Nature Refuge, which includes two endangered regional woodland ecosystems and habitat suitable for a variety of animals including koalas.[72]
Legal Challenges[edit]

There have been a number of legal challenges to the project.
Native Title claims[edit]
Adani Mining Pty Ltd and Another v Adrian Burragubba,
Patrick Malone and Irene White on behalf of the Wangan and Jagalingou People[edit]

Indigenous landholders mounted a challenge to Carmichael Mine, and called on the Queensland Government to refuse a mining lease to Adani Mining. In a major test of Australia's native title laws, the Wangan and Jagalingou people rejected the Indigenous Land Use Agreement with Adani. Adani then launched legal action (Adani Mining Pty Ltd and Another v Adrian Burragubba, Patrick Malone and Irene White on behalf of the Wangan and Jagalingou People) in the Native Title Tribunal in an attempt to enable the Queensland government to compulsorily acquire the land and push the mine ahead.[73]

Adrian Burragubba, spokesperson for the Wangan and Jagalingou people, said

"But I think there is a concern that the values that have been expressed in the Native Title processes, probably since 1997, are that mining is really equivalent to the public interest, mines must go ahead, and it's about compensation. So I think the [W&J people] don't have a lot of confidence that 'no' is really on the table, even though the legislation does provide it is on the table."[74]

The traditional owners against the development claimed the project would "devastate their ancestral lands and waters, totemic animals and plants, and cultural heritage".[75]
Environmental law[edit]
Mackay Conservation Group v Commonwealth of Australia and Adani Mining[edit]

In January 2015, the Mackay Conservation Group, based in Mackay, challenged the July 2013 federal approval of the Carmichael project by Greg Hunt, Environment Minister, under the Environment Protection and Biodiversity Conservation Act 1999.[76] The Group was represented by the Environmental Defenders Office of NSW. The case involved three main contentions:[77]
That the Minister unlawfully excluded consideration of greenhouse gas emissions to emissions directly associated with the operation of the mine. The Minister did not consider the much larger emissions associated with burning the coal from the mine.
That the Minister failed to consider Adani's poor record of environmental management in India, including building without approvals and illegally clearing mangroves,[78]instead relying on a statement from the company that it has a good track record.
That the Minister did not consider "approved conservation advice" for two endangered species that would be affected by the mine, the yakka skink and the ornamental snake, as required by federal law.[79]

The Federal Court set aside the approval on the latter ground. Despite reports Federal Court "overturned" the approval,[80] the decision occurred by consent order signed by the Department of Environment and Adani.[81]

The Department is currently reassessing the proposal.[18]
Adani Mining Pty Ltd v Land Services of Coast and Country Inc.[edit]

In May 2014 the Queensland Coordinator General recommended the project be approved[82] and there was a call for public comment and objections. Coast and Country, represented by Environmental Defenders Office Queensland, brought a case to the Queensland Land Court. They contended:
"Adani grossly overstated to the public the number of jobs, and royalties the mine would have for Queensland;
The mine, rail and port as well as the burning of coal will cause damage to the Great Barrier Reef from climate change and ocean acidification;
The mine will destroy the core population of endangered Black Throated Finch and may impact Waxy Cabbage Palms, and the potatoes grown in the area too;
The mine will threaten the base flow of the Carmichael River and may threaten the ancient springs estimated to be one million years old; and
The project is extremely risky and unlikely to be financially viable."[83]
Criticism of legal action[edit]

Substantial controversy about federal environmental law followed the 2015 Federal Court decision to set aside the Carmichael approval (agreed by consent orders signed by the government). Government Ministers criticised the group bringing this case under federal environment law, calling them "vigilante litigants" engaged in economic "sabotage".[84]

The government is seeking to change the law to prevent 'third parties’ from bringing cases where they are not directly impacted by the proposal.[84] Prime Minister Tony Abbott urged the business community to get behind these changes, saying "if the Adani mine does not go ahead soon, we are crazy."[85] Radio broadcaster Alan Jones, on many issues a supporter of the Liberal Government, has launched a TV ad, stating

"I may live nowhere near the Liverpool Plains or the Great Barrier Reef. But I sure as hell am concerned they are protected. ... The latest move by the Abbott government puts at risk not just our environment but our very democracy"[86]
See also[edit]

Queensland portal

Protestors at the Korean Embassy in Canberra warn Korean investors not to back Adani’s disastrous coal export plans | Market Forces

Protestors at the Korean Embassy in Canberra warn Korean investors not to back Adani’s disastrous coal export plans | Market Forces

Protestors at the Korean Embassy in Canberra warn Korean investors not to back Adani’s disastrous coal export plans

10 October 2018

Today, Canberrans turned out at the Korean Embassy to warn potential investors that buying a stake in Abbot Point means helping Adani build the most controversial project in Australia’s history.

It’s vital that Korean financial institutions and companies are made aware of the massive social and environmental risks posed by the Carmichael coal mine and rail project, and what they’d be getting themselves in for by helping Adani raise capital for this disastrous project.
Take action!

Click on the form below to contact the Korean Embassy (with the message bcc-ed to major Korean investors including the Korean Development Bank, the Korean Export-Import Bank and Mirae Asset Daewoo).
Tell Korea's embassy and financial institutions: don't support Adani's coal export plans!

Government documents reveal Korean government’s interest in Adani Carmichael

In October Market Forces obtained a document through Freedom of Information rules that revealed Korean interest in promoting the Adani Carmichael mine to its country’s financial institutions and companies.

The document is a memo sent from Seoul to Canberra from November 2016, after a meeting between the Korean Export Import Bank and Australia’s Department of Foreign Affairs and Trade. In it, the Korean officials say:

More generally, we underscored our interest in encouraging Korean investment in Australian infrastructure, as well as the participation of Korean E&C companies with respect to construction. While we understood that decisions with respect to commercial viability were for the private sector to make, we noted the strong interest of the Australian and Queensland governments in the success of this project.

Fast forward to 2018 and Adani is trying to sell part of its Abbot Point coal export terminal. It has already been reported that Adani is in talks with Korean investors over that sale. If successful the Abbot Point sale would unlock hundreds of millions of dollars that could then be used to finance the Carmichael mine and rail projects.

If Adani successfully sells part of Abbot Point to Korean investors it would be a major step forward for the Carmichael mega coal mine.

Korean investors need to urgently be made aware of the massive social and environmental risks that are attached to the Carmichael coal export project. If they buy a stake in Abbot Point and help Adani raise capital for the Carmichael project they will be exposed to the immense reputational risk that comes from the most controversial project in Australia’s history.

Korean banks tell traditional owners they won't back Adani's Queensland mega-mine - World News - ABC News (Australian Broadcasting Corporation)

Korean banks tell traditional owners they won't back Adani's Queensland mega-mine - World News - ABC News (Australian Broadcasting Corporation)

Korean banks tell traditional owners they won't back Adani's Queensland mega-mine

Exclusive by Josh Robertson

Posted about 9 hours ago

PHOTO: Anti-Adani traditional owners will lobby other Korean lenders to turn down any requests for funding. (ABC News)

RELATED STORY: Major Chinese banks reject bankrolling Adani mine

RELATED STORY: Adani abandons another funding deadline for its giant coalmine

RELATED STORY: Another funding route for Adani? Finance agency confirms talks

Major Korean lenders have ruled out any role in funding Adani's contentious Australian coal project, just months after the miner was reportedly in talks to win backing from lenders in Seoul.

Key points:
Adani is trying to get funding for a its proposed Queensland coal project
Traditional owners opposed to the mine will lobby Korean lenders to not back the project
Three major Korean lenders have written to the group saying they won't help fund it

Traditional owners fighting the mine have secured pledges from a trio of lenders including the Export-Import Bank of Korea, a critical conduit for Korean lenders, which said it believed there was no longer any interest in the mega-mine.

Anti-Adani representatives of the Wangan and Jagalingou (W&J) traditional owners will today fly to Korea to continue lobbying lenders, including Mirae Asset Daewoo, which refinanced Adani's Queensland coal port in July.

Adani is vying to clinch funding for a new scaled-down launch of a project first touted to cost $16.5 billion, now earmarked to get underway with an initial $2 billion.

The W&J are split on the mine, and opponents who tried in vain to overturn an Indigenous land use agreement (ILUA) with Adani are appealing before the full bench of the Federal Court.

The ILUA is critical to the funding of the project, as major global lenders require Indigenous consent for resources projects.

The Export-Import Bank of Korea met with Department of Foreign Affairs and Trade officials in 2016, at Adani's request, to discuss "engagement" with the project.

But the bank wrote to the W&J Family Council last Thursday, all but ruling out the prospect of any lender interest in Adani from Korea.

PHOTO: W&J elder Adrian Burragubba says companies shouldn't be complicit in destroying sacred places. (ABC News: Isobel Roe)

"We would like to inform you that, the Export-Import Bank of Korea (Korea Eximbank) does not have any intent to provide financial support to the Carmichael project, since, as far as we know, there are not any Korean interests any more in the project," it wrote.

The Korea Development Bank wrote on October 31: "We wish to express that we have no intent to provide finance for the project."

"Please kindly be informed that, without any commitment, we reviewed the project upon a Korean client's request in 2014," it said.

"However, we are no longer reviewing it."

PHOTO: Adani's Queensland headquarters in Townsville. (ABC News)

KDB Infrastructure Investments Asset Management Co (KIAMCO) also wrote to the W&J Family Council on Friday to "hereby confirm that we have no intention to participate by all means, financial or other support or services, in the development of the Carmichael mine".

"We deeply conform [to] the responsibility of financial investors and have well understood the importance and concerns for the development of the Carmichael mine on the W&J's ancestral lands," it said.

The W&J Adani opponents said they would seek meetings and hold "media events" at the offices of other institutions including Mirae Asset Daewoo, Korea's National Pension Service and NH-Amundi.

A similar lobbying roadshow by W&J representatives in the US and Europe in 2015 saw major lenders, including Britain's largest investment bank Standard Chartered, back away from Adani.

The ABC understands financial industry sources recently confirmed with Australia's big four banks that none would have a role in the Carmichael project.

A media report in September suggested Adani was seeking to partly fund the Carmichael project by selling a stake in its Abbot Point coal port to Korean interests.

The Queensland government has said Adani must reach "financial close" before it will permanently wipe out native title claims to the mine site to hand over tenure to the miner.

But it has also asked Adani to put up security for a royalties deal that would allow the miner to defer hundreds of millions of dollars of state payments — which Adani is yet to sign after 18 months.
Traditional owners have made formal complaint to UN

The W&J mine opponents are battling to retain their native title rights and have formally complained to the United Nations.

"Whoever assists Adani financially at this crucial time will become complicit in a grave breach of our rights, and the destruction of our lands and waters and sacred places," W&J elder Adrian Burragubba said.

"They are also exposing themselves to financial risk because success in our Federal Court appeal due next year would deliver great uncertainty to investors."

Another W&J anti-Adani representative travelling to Korea, Murrawah Johnson, said 33 major institutions had now ruled out funding Adani.

"The interest in Adani from Korean banks or potential equity financiers needs to be made clear after reports that Adani has held talks with Korean finance companies," she said.

"We are seeking to close the door on this financing avenue."

An Adani spokeswoman said the company had been "working with the traditional owners of the Carmichael project area, the Wangan and Jagalingou, Juru, Birriah and Jangga, since 2010".

"Indigenous Land Use Agreements are in place with all four claim groups and are registered by the National Native Title Tribunal," the spokesperson said.

Topics: mining-industry, environment, environmental-impact, indigenous