Antinuclear

Australian news, and some related international items

THE ADANI COAL MESS: Australia to provide big subsidies to Indian Billionaire and Chinese government?

If the deal does go ahead with backing from Chinese state-owned enterprises, it could see Australia providing big direct and indirect subsidies to a company effectively owned by an Indian billionaire and the Chinese Government.

Adani: Chinese state-owned company could help bankroll Carmichael coal mine, ABC News, 2 Nov 17 By business reporter Stephen Long For years it has been a mystery where Adani would get the money to build its giant Carmichael coal mine in North Queensland.

Key points:

  • Chinese state-owned enterprise CMEC in negotiations with Adani
  • Deal would involve CMEC given manufacturing contract in return for procuring finance
  • Some close to the negotiations sceptical about deal being finalised

Now we may have the answer.

The ABC has learned that a Chinese state-owned enterprise, China Machinery Engineering Corporation (CMEC), is in negotiations with Adani and its principal engineering and procurement contractor, Downer EDI.

If the deal goes ahead, it would see CMEC awarded contracts to build key mining plant and equipment in return for China’s financial backing of the Carmichael mine.

CMEC is listed on the Hong Kong stock exchange, but is 78 per cent owned by the giant Chinese state-owned enterprise China National Machinery Industry Corporation Ltd, or Sinomach.

Earlier this year, a senior Adani executive, Praveen Khandelwal, and the chief executive of Downer EDI Mining, David Overall, visited China as guests of CMEC.

They were guests of CMEC president Zhang Chun.

After the visit, Mr Zhang announced that CMEC “hoped to cooperate with Adani and Downer to take part in financing, construction and operation of relevant coal mines and railway projects” as well as construction of new energy projects in Australia.

According to CMEC, the executives from Adani and Downer in turn expressed their desire that the three parties “jointly complete the coal and railway projects under Adani and achieved all-win results”………

Last week at a Senate hearing, officials from the Department of Foreign Affairs and Trade (DFAT) confirmed Australian government ministers had written to the Chinese Government in support of the Adani mine, confirming it had all necessary approvals, in a bid to help secure finance.

This followed a Freedom of Information request to DFAT about requests for foreign financing of Adani’s Australian project which “captured several hundred pages of documents”.

The ABC has received mixed reports on prospects of Adani reaching agreement with CMEC and procuring financial backing for the mine.

If the deal does go ahead with backing from Chinese state-owned enterprises, it could see Australia providing big direct and indirect subsidies to a company effectively owned by an Indian billionaire and the Chinese Government.

Some close to the negotiations are sceptical about a deal being finalised.

Adani’s spokesman would not comment, other than to say Adani was “well advanced in securing finance”. http://www.abc.net.au/news/2017-11-02/adani-chinese-state-owned-companies-in-deal-to-bankroll-mine/9109880

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November 3, 2017 - Posted by | AUSTRALIA - NATIONAL, politics international

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