Mixed signals for Adani
BUSINESS roadshow, uninterested bankers, and federal rail funding speculation.
Wednesday 21 December 2016
It’s been another week of mixed signals on the Adani Carmichael coal project with media reports ruling out two of Australia’s big banks for financing the project but talking up the possibility of federal funding for the railway, while a local networking group has announced plans for a three-day project supplier roadshow early next year.
In late January the Bowen Basin Mining Club (BBMC) - will visit five key towns in Central Queensland, and for $30 individuals can hear an hour-long presentation on “subcontracting and supply chain opportunities” for the proposed Carmichael mine.
While director of the BBMC Jodie Currie said she had no information confirming the project will definitely go ahead - she said the roadshow builds on the announcements made by Adani last month.
“Adani is planning to start construction in August, September 2017 and has committed to jobs and supply chain opportunities for local, regional communities,” she told Shift Miner.
“This roadshow is a two-way communication to ensure that businesses get the right information about the project and opportunities available, and Adani becomes aware of the capabilities of the businesses in the regional communities.”
Less optimistically this week, the Australian newspaper said the ANZ bank had joined NAB in effectively ruling out investing in the mine, quoting chief executive Shayne Elliott saying ANZ had halved their Australian coal investments.
“It’s pretty small [coal investment] and trending down, and I can’t see a time where we’d suddenly see that trend shift, to be honest,” Mr Elliott told The Weekend Australian.
The Australian added that in September, the NAB announced it was not involved in the Adani projects and had “no plans to be involved in any financing”.
Although on a more positive note for those hoping for a green light on the Adani project, the Newspaper said there is mounting speculation that the Turnbull government will contribute $1bn to the cost of building a railway to the Galilee Basin.
A fortnight ago, Adani made headlines when it reaffirmed its commitment to Townsville as its regional headquarters and more importantly set a time frame for the critical final investment decision for it’s Carmichael mega-mine.
Adani also flagged important roles for other Central Queensland towns, including Bowen for its rail & port headquarters, Mackay for mining services, and possibly Rockhampton as a FIFO hub - although that role may also end up in Townsville.
While the news has been welcomed by mining regions who have been struggling through the mining downturn, it’s not yet an iron clad guarantee that the project will ever happen.
Adani still needs to make the all important multi-billion dollar final investment decision (FID) which will confirm the project, and remove all the uncertainty that has clouded this enormous intergenerational project for nearly a decade.