The Cayman Islands-controlled rail company has rights to a royalty stream worth up to $3 billion from the proposed mine, the ABC recently revealed — a payment that would come at the expense of shareholders in the publicly listed Adani Enterprises.
Adani facing growing pressure on fears investors may have been misled http://www.abc.net.au/news/2017-03-22/adani-facing-growing-pressure-investors-may-have-been-misled/8376794 By Stephen Long, Adani Group is facing growing pressure to reveal which company in its complex corporate web has applied for a $1 billion subsided loan from the Australian Government, amid fears money could be shifted to a tax haven and investors may have been misled.
An Australian law firm has written to the Bombay Stock Exchange asking it to clear up the confusion about a $1 billion funding application to the Federal Government’s Northern Australia Infrastructure Facility (NAIF).
The loan would finance a 400-kilometre railway from Queensland’s Abbot Point Coal Terminal to a planned massive mine in the Galilee Basin, which, if it goes ahead as proposed, would contain six open-cut pits and five underground collieries.
It is “absolutely possible” investors have been misled about the loan, lawyer David Barnden from not-for-profit law firm Environmental Justice Australia (EJA) told the ABC. “In terms of misleading the market, the NAIF funding is really, really important for Adani’s share price,” Mr Barnden explained.
“When [Resources Minister] Matt Canavan told Reuters last week that Adani Enterprises had applied for the funding, the share price went up 4 per cent.”
Adani’s planned Carmichael coal mine to shift millions to Cayman Islands controlled company, ABC News 13 Mar 17 by Stephen LongUp to $3 billion from Adani’s planned Carmichael coal mine will be shifted to a subsidiary owned in the Cayman Islands if the controversial project goes ahead, an analysis of company filings shows.
- ‘Royalty deed’ gives shell company rights to recieve $2-a-tonne payment beyond first 400K tonnes mined for two decades
- Entitlement owned by company registered in Cayman Islands, controlled by Adani family
- Carmichael coal mine’s production capacity means payment ammounts to about $120 million per year
An “overarching royalty deed” gives a shell company rights to receive a $2-a-tonne payment, rising yearly by the inflation rate, beyond the first 400,000 tonnes mined in each production year for two decades.
The company with this entitlement is ultimately owned by Atulya Resources Limited, a secretive entity registered in the Cayman Islands, and controlled by the Adani family.
“In plain English, the upshot for the Adani family is [that] if the mine goes ahead, they receive a $2-a-tonne payment, so up to $3 billion, via a Cayman Islands company, a company owned in a tax haven,” says Adam Walters, principal researcher and Energy Resource Insights……
“I would describe it as a structure that means that the Adani family enriches themselves if the mine goes ahead but that other shareholders are impoverished,” associate professor Thomas Clarke, director of the Centre for Corporate Governance at UTS told the ABC.
“The worry is that this may be just the beginning.
He said the billions flowing to the Adani private company would come at the expense of minority shareholders in the company listed on the Bombay stock exchange which ultimately owns the Carmichael mine.
Media player: “Space” to play, “M” to mute, “left” and “right” to seek.
How Adani acquired the right to this multi-billion-dollar revenue stream is a tale in itself……..
Last year Resources Minister Matt Canavan dismissed the ABC’s investigation into Adani’s web of companies leading to tax havens as “fake news”.
He rejected concerns about the web of companies and trusts, many owned in tax havens, that Adani had set up for its Australian operations, says resources companies such as Rio Tinto and BHP also had complex company structures.
Dr Clarke said that is nonsense.
“This is a classic third-world pyramid structure, with the Adani family having a controlling interest in all of the different companies, publicly listed, privately listed and the offshore companies which are its private properties,” he told the ABC.
“It can freely move cash or assets between the different entities to the benefit of its own family interests.”
But according to the Minister, the advice from his department is that it is all perfectly legal.
Adani’s spokesman did not respond to a series of questions.http://www.abc.net.au/news/2017-03-14/adani-carmichael-coalmine-to-shift-millions-to-cayman-islands/8350704
Big Australian banks invest $7bn more in fossil fuels than renewables, says report https://www.theguardian.com/australia-news/2017/mar/06/big-australian-banks-invest-7bn-more-in-fossil-fuels-than-renewables-says-report ANZ, NAB, Commonwealth Bank and Westpac provided three times more for non-renewable than clean energy projects in 2016, says Market Forces, Guardian, Naaman Zhou, 6 Mar 17, Australia’s big four banks invested three times as much in global fossil fuels as they did in clean energy in 2016, despite pledging to help Australia transition to a low carbon economy.
The banks provided a combined $10bn to projects around the world that expanded non-renewable energy, according to finance group Market Forces.
ANZ and the Commonwealth Bank were the worst offenders, investing over $3bn each in fossil fuels. In the same period, ANZ only lent $225m to renewables, giving it a 14:1 ratio. Continue reading
Adani director appointed to body overseeing mining giant’s coal port despite conflict of interest warning http://www.abc.net.au/news/2017-02-27/adani-director-appointed-government-body-overseeing-coal-port/8301104 Exclusive by the National Reporting Team’s Mark Willacy and Alexandra Blucher 27 February 2017:
“The Queensland Government appointed an Adani company director to chair the authority overseeing the Abbot Point coal port, despite being warned of “potential conflicts of interest”.
“It’s undoubtedly a conflict of interest,” said law professor on Mr Fish’s appointment
Treasurer’s office confirms it knew of Mr Fish’s directorship and that he “disclosed potential conflicts of interest prior to his appointment”
But Mr Fish’s link to Adani was not disclosed publicly by the Treasurer when he was appointed … “
Pre-election coal advertising funded by money meant for clean coal research, ABC News, By Stephen Long 21 Feb 17 The coal industry’s multi-million-dollar advertising and lobbying campaign in the run-up to the last federal election was bankrolled by money deducted from state mining royalty payments and meant to fund research into “clean coal”.
- Coal21 fund launched in 2004, aiming to create $1 billion to research “clean coal technologies”
- Fund’s coal levy was suspended from mid-2012 to mid-2016
- In 2013 coal lobby changed mandate of Coal21 to allow its funds to be used for “coal promotion”
The mining industry spent $2.5 million pushing the case for lower-emissions, coal-fired power plants in the run-up to last year’s election — a cause the Federal Government has since taken up with gusto.
The source of the funds was a voluntary levy on coal companies, originally intended to fund research into “clean coal” technologies, which coal producers could deduct from state mining royalties.
Instead, some of the money raised paid for phone polling, literature and TV ads that declared “coal — it’s an amazing thing”.
The funds were channelled through the Australian Coal Association Low Emissions Technology Limited (ACALET), formerly owned by the Australian Coal Association and now part of the Minerals Council for Australia.
Queensland Government documents list “the COAL21 levy payable to Australian Coal Association Low Emissions Technologies Ltd (ACALET)” as an eligible deduction against royalty payments in the state.
A “coal research” levy in NSW is also deductible against coal mining royalty payments, under a deal signed off by the disgraced former NSW Labor minister Ian Macdonald, who was charged with criminal offences after an ICAC inquiry.
Coal21 was launched more than a decade ago, with the aim of creating a $1 billion fund for research into “clean coal” technologies like carbon capture and storage (CCS), but only a fraction of the money was raised or spent.
With a lack of research projects to finance, the levy was suspended in 2012. In 2013, the coal lobby changed the mandate of Coal21 to downplay research and allow its funds to be used for “coal promotion”.
Critics ‘outraged’ by industry’s use of funding
Funding the industry campaign from money that otherwise would have been paid to state governments as mining royalties has outraged the Federal Opposition and the coal industry’s critics.
“It is a huge shame that Coal21 funding, which was mean to go into genuine CCS research, is now being used to finance advertising and political campaigns,” Labor’s environment spokesman Mark Butler said.
Australia Institute chief economist Richard Denniss said it was “scandalous”.
“Every dollar spent on advertising as part of the coal industry campaign was a dollar that should have gone into consolidated revenue,” he said.
“Citizens funded a propaganda campaign with money that would otherwise have gone into public revenue to fund schools and hospitals.”
Australian Conservation Foundation summarises the background of Adani’s Carmichael coal mine and rail project
The Adani Brief: our summary https://www.acf.org.au/adani_brief_summary
https://groups.google.com/forum/#!topic/wgar-news/QkXUYq11cmQ 15 February 2017:
The brief is the result of months of international investigation by Environmental Justice Australia and
USA-based environmental law non-profit EarthJustice into the global legal compliance record of the Adani Group.
It puts governments and private stakeholders on notice that backing Adani’s Carmichael
coal mine and rail project in Queensland’s Galilee Basin
may expose them to financial and reputational risks.
Adani Group companies have a record of environmental destruction and non-compliance with environmental regulations.
Some examples are: …
“‘Black money’: …
“Bribery and illegal exports: …
“Confusing and opaque corporate structures: …
“This is a company the government is entrusting: … ”
The Adani Brief:
What governments and financiers need to know
about the Adani Group’s record overseas
Australia’s taxpayers subsidise a private company set up by ANSTO to sell nuclear power produced isotopes
ANSTO’s link http://www.nuclearaustralia.org.au/ansto-nuclear-medicine-project/ This is a slide from the above link. ANSTO Nuclear Medicine (ANM) Pty Ltd is a commercial subsidiary of ANSTO.
So a company is going to cream off the profits while Australian taxpayers subsidise the reactor and the waste disposal – and communities have to deal with the costs of a nuclear waste dump. Another slide says “Full Cost Recovery Model” – the full cost can never be recovered when you are dealing with nuclear waste.
Emerging this decade are the many challenges to the whole nuclear industries range of products from; medicine, reactors, weapons
Not to mention the always present 1940s backdoor issue that’s never been solved, that of nuclear waste management
This submarine news makes a joke of our neocon naval purchase, particularly if the goal was to put nuclear reactors into the Shortfin Barracuda Block 1A at some future point
The whole biased process used by those enamoured the nuclear industry is becoming increasingly obvious. Particularly, when this Swedish technological development must have been known about but discarded in favour of the nuclear state, France. Who are a founding member of UN Security Council P5 and who as a group control all nuclear issues globally through the IAEA
Nonetheless, this is a notable problem with all nuclear infrastructure, that is, the slow technological development due to the magnitude of the complex physics difficulties. Issues that are becoming common knowledge and as such widely understood by the public as a secondary downside along with unsolved waste problem
Obsolescence is the biggest problem with all nuclear technology, and the whole industry struggles to survive without sovereign capital funding. Most importantly, because clean alternative technology is rapidly developed and easily recycled.
What is interesting is the catalytic conversion of C02 and water into diesel although in its infancy, has already been trialled as economically viable, as well as being CO2 neutral, and that is before the carbon industry started discounting oil. In all probability, blue or e-diesel will be a good, clean fuel for submarines given the exponential growth in German fuel technology and their incredible technological record as world leaders in catalytic technology
Is it any wonder Germany stepped off the whole nuclear cycle, with such advances rapidly developing, making current nuclear tech look so last century, dated and obsolete?
source: the national interest: an American bi-monthly international affairs magazine published by the Center for the National Interest https://www.facebook.com/groups/1021186047913052/
His current book lists just two clients: Bechtel Infrastructure (Australia) Pty Ltd and G4S Custodial Services Pty Ltd.
Internationally, Bechtel has worked on a variety of substantial projects in the nuclear fuel cycle. Examples include:
Advanced Mixed Waste, Idaho, USA
Chernobyl Shelter and Confinement, Ukraine
Davis-Besse Nuclear Power Station, Ohio, USA
Hanford Waste Treatment Plant, Washington, USA
Horizon Wylfa Newydd, Isle of Anglesey, Wales, UK
Reagan Test Site, Marshall Islands
Savannah River Remediation, South Carolina, USA
Sellafield Pile Fuel Cladding Silo Retrieval, England
U.S. Nuclear Security Enterprise, Texas and Tennessee, USA
Uranium Processing Facility, Oak Ridge, Tennessee, USA
Watts Bar Completion, Tennessee, USA
Yucca Mountain Nuclear Waste Repository, Nevada, USA http://www.dpc.sa.gov.au/documents/rendition/B18707
Steve Dale Fight To Stop Nuclear Waste Dump In Flinders Ranges SA, 27 Dec 16
“DCNS’s operations face questions across almost the entire globe, including in Pakistan, Malaysia, India, Saudi Arabia and Chile, with bribes and kickbacks reportedly comprising 8 per cent to 12 per cent of DCNS’s entire budget.”
French subs builder’s record of corruption, The Saturday Paper, HAMISH MCDONALD, 30 Apr 16 “…….The Defence Department has been dazzled by promises from shipbuilder DCNS of ultra-quiet pulse-jet propulsion, a powerful sonar array from Thales, a comfortable space for the crew, and a very long range. Now all that has to be done is design the new boat, replacing the nuclear reactor in the Barracuda with diesels, batteries and fuel cells, and fitting in fuel tanks.
As the Hong Kong-based website Asia Sentinel has pointed out, “DCNS’s operations face questions across almost the entire globe, including in Pakistan, Malaysia, India, Saudi Arabia and Chile, with bribes and kickbacks reportedly comprising 8 per cent to 12 per cent of DCNS’s entire budget.”
No doubt our politicians and officials are aware of all this, and will be ready to account for any largesse. Perhaps they should automatically knock off 8 to 12 per cent of any price quoted by DCNS. https://www.thesaturdaypaper.com.au/world/north-america/2016/04/30/french-subs-builders-record-corruption/14619384003178
The Age, 24 Dec 16, Eamon Duff. A security consultant who held a “top secret” government clerance inside Australia’s only nuclear facility has been arrested and charged with the illegal possession of “official secrets” and an unauthorised weapon.
Until February last year, Anthony Rami Haddad was manager of security and operations at the Lucas Heights nuclear reactor, safeguarding the site against theft, diversion and sabotage.
However, following a stint in the Middle easrt where he worked on another nuclear security project, he returned hom eto Sydney, and last month became entangled in an unrelated investigation being run by the Australian Federal Police’s fraud and anti-corruption team.
A fortnight ago, Haddad appeared before Sydney’s Downi8ng Centre Local court, where he pleaded guilty to unauthorised receipt of official secrets under the Commonwealth crimes Act.
He has yet to enter a plea for a second charge, ppossessing an unauthorised prohibited firearm. His barrister, Nikolaos Siafakas, will apply to have the outstanding matter dealt with under section 32 of teh Mental Health Act……..
According to ANSTO documents, Haddad’s many responsibilities at Lucas Heights included the “mamagement of security operations” at the onsite Little Forest radioactive waste dump and its “seamless integration” into the facility’s “wider” protective security systems.
Haddad will reappear in court on Februaty 7. No link available. I couldn’t find this on the Internet
The half-life of plutonium is 24,000 years. At this rate of decay, the Maralinga lands would be contaminated for the next half-million years.…..A variety of factors underlay the harm to public health, Aboriginal culture and the natural environment which the British tests entailed. Perhaps most significant was the secrecy surrounding the testing program….There seems little doubt that the secrecy in which the entire testing program was cloaked served British rather than Australian interests…..Information passed to Australian officials was kept to the minimum necessary to facilitate their assistance in the conduct of the testing program. The use of plutonium in the minor trials was not disclosed……
A toxic legacy : British nuclear weapons testing in Australia, Australian Institute of Criminology. “…… Three days after the conclusion of the Totem trials, the Australian government was formally advised of British desires to establish a permanent testing site in Australia. In August 1954, the Australian Cabinet agreed to the establishment of a permanent testing ground at a site that became named Maralinga, Continue reading
Adani’s Galilee Basin complex corporate web spreads to tax havens, ABC News 21 Dec 16 Stephen Long It is an intriguing corporate web that spreads from North Queensland, across Asia to the Caribbean.
Giant Indian conglomerate Adani, which plans to build one of the world’s largest coal mines in Queensland’s Galilee Basin, has set up a complex network of companies and trusts in Australia which are owned in one of the world’s major tax havens, the Cayman Islands.
The Adani Group is also attempting to shift ownership of the existing Abbot Point coal port — which it bought for $1.8 billion — to a Singaporean company ultimately owned in the Cayman Islands.
An exhaustive search of company filings and documents across the globe has cast light on this opaque structure of ownership and control.
It has alarmed environmental activists and legal experts, who fear it could make it harder to gain compensation from Adani in the event of an environmental disaster from Adani’s planned mine and port expansion on the edge of the Great Barrier Reef.
“I’ve been a businessman for most of my life, as well as an environmental activist, and the risks are great,” said Geoff Cousins, former Optus CEO and chairman of the George Paterson advertising agency, now a board member of the Australian Conservation Foundation.
“With these kinds of approvals of big mining operations or port operations, you always get a set of conditions that the Government puts on.
“But those conditions aren’t worth anything if, when something goes wrong, you try to find the company responsible and either it has no money or if it has money it’s in a tax haven and you can’t reach it.”
It is a view echoed by David Chaikin, a professor of business law at the University of Sydney.
“The advantage of having the money in tax havens is that you are able to conceal the source of money, the use of money, and also to minimise tax,” he said.
Coal infrastructure owned through opaque structures
As well as building Australia’s biggest coal mine in north Queensland, Adani is planning a huge expansion of the existing coal terminal at Abbot Point, near Bowen, to ship coal across the Great Barrier Reef to India — turning it into one of the world’s biggest coal ports.
It also wants to build a new railway linking the mine, about 400 kilometres inland, to the port.
All the planned developments are based on corporate structures involving tax havens.
Control of the railway — which the Federal Government is preparing to support with a $1 billion publicly subsidised loan — ultimately resides in the Cayman Islands, one of the world’s most notorious and secretive tax havens………
Transferring ownership of the critical port infrastructure to a Caymans Islands’ company “means it will be unregulated, unaccountable,” Tim Buckley, director of the Institute for Energy Economics and Financial Analytics told the ABC.
“It will be non-transparent to the Australian Government as to what is going on, who owns it, who are the directors. To me it is a matter of national security.”
Companies and trusts created by Adani for the proposed Carmichael mine are ultimately owned by Adani Enterprises, a publicly-listed company in India, but the control flows via a company registered in the tax haven of Mauritius, Adani Global Ltd.
A $5 billion fund the Federal Government set up for the development of northern Australia, the Northern Australia Infrastructure Facility or NAIF, is considering a request from Adani for a $1 billion subsidised loan for its rail development.
The NAIF refused to disclose which Adani entity had applied for the finance when approached by the ABC.http://www.abc.net.au/news/2016-12-21/adani-corporate-web-spreads-to-tax-havens/8135700
Top secret document reveals British troops were knowingly revealed to radiation during nuclear fallout tests – mirror.co.uk, by Susie Boniface, 2 Jan 2011, British troops WERE knowingly exposed to radiation during nuclear fallout tests, a top-secret document has finally proved.
For five decades, successive governments have denied any harm was caused to the 22,000 servicemen ordered to witness nuclear bomb tests in the Fifties and Sixties – saying the explosions were to test the weapons, not their effects on humans, and the men were at a safe distance.
But a draft Press release written before tests in Australia in 1956, now uncovered in the National Archives, reads: “The possible effects of the ingestion of radioactive fallout (by men and animals) will be among the subjects studied.”
It has the words “by men and animals” crossed out in pencil, and the version that was actually released mentions only sheep and small animals.
The document blows apart official claims that the tests were not harmful to the troops who witnessed test blasts in Australia, the US and the South Pacific.
It also backs the test veterans’ claims that they were used as “guinea pigs” by the MoD in its race to build an atomic bomb.
Since the tests they say they have suffered high rates of cancers and other illnesses. More than 1,000 vets and widows have won the right to sue the MoD.
The top-secret Press release was unearthed by veteran David Wilson, 74, from Shropshire, who served as an RAF clerk at Christmas Island in the South Pacific during two bomb blasts.
Mr Wilson, who is one of the vets suing over illnesses he has suffered, said: “We were ordered there purely and simply to witness those tests, as guinea pigs.”
The press release was drafted ahead of Operation Buffalo at Maralinga, during which troops were ordered to crawl through areas hit by fallout. It was not meant to be made public until..