news, federal-politics,

Adani Australia is hoping to start building its proposed $2 billion Carmichael mine within weeks but there are concerns the controversial mine might never get off the ground without public funds. University of Queensland economist Professor John Quiggin says economic arguments for the controversial mine just don't stack up. He said the mine in the Galilee basin faces a number of obstacles before it can begin exporting coal even if it receives state government approval for a groundwater management plan next week. Prof Quiggin said Adani needed to overcome hurdles including the development of a rail line, finance and insurance. Adani says finance was secured in November 2018 and the "requisite insurance requirements" were in place, although they could not name the company covering them due to commercial in confidence. However, Adani did not respond to questions of whether negotiations over the construction of a new rail line, which connects to an line owned by Aurizon, could result in more delays. Prof Quiggin also said the proposed Central Queensland coal mine would begin shipping out coal at a time when global demand is expected to be in decline, something Adani refutes. He said the mine would need to be open for decades before it breaks even on the investment. "They're really taking a bet that all the moves that have been taken against coal will all come to nothing," Prof Quiggin told AAP. He said a number of European countries are moving away from coal for power production and North America had seen rapid closures in coal power stations. Prof Quiggin said to the mine to stack up financially the company would need subsidies "at both ends". He said Adani Group founder Guatam Adani would need a substantial amount of public money put into the mine in Australia. "And he needs to sell to power stations at prices over the odds in India to make this work," Prof Quiggin said. "My view is unless they get public money it won't go ahead." "Contrary to what has been suggested I don't think we'll see a rapid ramp up once the (approvals) are out of the way." Adani is confident there will be a strong demand for coal. "We are very confident there is demand for, and customers awaiting, our product especially in countries such as India," a statement read.

https://nnimgt-a.akamaihd.net/transform/v1/crop/frm/fdcx/doc73a9q2m4nn54srqbbbl.jpg/r0_122_2400_1478_w1200_h678_fmax.jpg