Benefits: Adani says the total $21 billion project, which covers the Carmichael mine, rail and port development, will deliver 10,000 direct and indirect jobs over the life of the mine. Adani also claimed it would create 2500 to 3000 full-time jobs when operational – a figure disputed in court by environmentalists, who said the total jobs may only be 1500. This was later confirmed by Adani in court.

The Queensland government, which has been looking for the next big project after the end of the construction of the $80 billion liquefied natural gas export industry in Gladstone, has bent over backwards to get the Carmichael mine off the ground. It stands to receive $22 billion in coal royalties and taxes from the project as well as an economic boost from the project in the regional cities of Townsville and Rockhampton which have struggled since the end of the coal boom.

The Turnbull government, especially Queensland-based National MPs such as Northern Australia Minister Matt Canavan, are keen for the project to proceed. Adani has applied for a $1 billion loan from the $5 billion Northern Australia Infrastructure Fund to help build the rail link.

Adani was on the front foot on Tuesday in the PR battle, saying Townsville would be the regional headquarters for the project with smaller towns as services hubs.

Challenges:

Finance – There is a reason the Galilee Basin has been left undeveloped for the past 50 years. For a start, it's close to 500 kilometres from ports on the coast, meaning whoever is going to build the project has to outlay billions of dollars to get the project built. And the quality of the coal is not as good as others in the closer Bowen and Surat Basin.

India's Adani Group also has to find $10 billion to finance the project. There are also questions raised about whether the project is economically viable after a plunge in the coal price following the end of the coal boom. But even though the price of thermal coal has recovered to above $100 a tonne in recent months, it is less relevant because Adani is using the coal for its own power stations rather than selling to other customers. The Institute of Energy Economics and Financial Analysis director Tim Buckley – a vocal critic of the project – says Adani's parent company is struggling with current market capitalisation of equity at $US1.1 billion, against which it has net debts of $US2.4 billion.

Environmentalists – Adani's Carmichael project has become the lightning rod for anti-fossil fuel activists and environmentalists who want to stop the building of any new coal mines in Australia. It also fits into the narrative about Australia's changing energy mix – from one dominated by coal and gas to renewable energy such as wind and solar. Environmentalists claim the extra coal exports will damage the World Heritage-protected Great Barrier Reef, although it has received environmental approval from both state and federal governments. As the Turnbull government releases its 2017 climate review this week, the argument over the Adani mega-mine also ties in with the debate about whether Australia,- which has one of the largest emissions per capita,- should be building another large coal mine that will release more greenhouse gases into the atmosphere.


Well-funded and media-savvy environmental groups have also been very effective in targeting banks about lending to the Carmichael mine. Some banks, under pressure to make sure they look like good corporate citizens, have promised not to lend to any future coal mines.

Legal activism – One of the reasons the project has been progressing at a snail's place the past seven years is because environmental and Indigenous groups have used the legal system to their advantage and challenged virtually every aspect of the project. The mining lease, environmental authority, and native title have been challenged by a range of parties, including the Australian Conservation Foundation, little-known group Coast & Country as well as Indigenous group, the Wangan and Jagalingou. They have successfully held up the project, resulting in the former Abbott government threatening to change the laws to make it harder to challenge big mining projects.

Last month, two legal challenges were thrown out of court, leaving three appeals – two before the full bench of the Federal Court over the Environmental Protection and Biodiversity Act and native title, and there is also a judicial review of Adani's port expansion at Abbot Point which has been brought by local residents in the Whitsundays – before the project can be given the green light.



Scandal – The Adani Group has been plagued by allegations of corruption surrounding its projects in India. Adani Group chairman Gautam Adani is one of India's richest men, whose personal wealth was valued at $7.1 billion in 2014 by Forbes magazine. There have been allegations of environmental vandalism in relation to the development of the Port of Mundra, which is owned by Adani, as well as claims of tax evasion. Adani's Australian chief executive Jeyakumar Janakaraj has also been dragged into the scandal by failing to disclose his history running a mining company in Africa that pleaded guilty to serious economic harm. So far, none of these allegations have failed to bring down any of Adani's executives, but it adds to the controversy over the project.

Adani, perhaps sniffing the political breeze, has also been investing heavily in renewable projects, in India and Australia.