Indian groups keep stake in Abbot Point, reef dumping

Indian mining groups –  Adani and GVK-Hancock –  have not waivered to drop their stakes in the controversial Abbot Point Port terminals in Northern Queensland.

The rest had already dropped the deal, including BHP Billiton and Rio Tinto. Anglo American is the latest to announce it is walking away.

Abbot Point in Northern Queensland (Photo: NQBPC)

BHP Billiton has formally withdrawn from the $5 billion worth of project as the preferred developer of Terminal 2  in 2012. It also pulled out of building a rail line linking the port with Bowen Basin mines.

Early on, doubt has been cast over the feasibility of the project.

The recent decision by Anglo American re-affirms the unfeasibility of the project. The firm announced that oversupply of coal in the world market has dampen prices.

As of its December 2013 financial records, “metallurgical coal saw underlying operating profit fall 89% to $46m, while thermal coal profits fell 32% to $541m as a result of lower realised prices.”

Bloomberg’s writer, Elisabeth Berhmann, quoted a Sydney-based commodity analyst from Goldman Sachs Groups Inc as saying, “For these projects to be attractive investments, you need to be quite bullish about thermal coal prices….If you’re a power company, and you’re wanting to secure sources of coal, there’s plenty of coal in the market.”

Mining Australia notes the expansion would see four terminals costing $6.2 billion which would provide an extra annual capacity of 120 million tonnes. this would also support the development of mines in the Bowen, Surat, and Galilee Basins.

Adani and GVK Hancock, however, are all out to develop Terminal 0 and Terminal 3, respectively.

Josh Euler, manager for corporate affairs at GVK Hancock, welcomes the decision to go ahead with the expansion. He said in a  press statement , “This is a significant milestone in developing our Galilee Basin coal projects, which represent the creation of over 20,000 direct and indirect jobs and over $40 billion in taxes and royalties.” .

Double disadvantage

Amid bearish coal market prices, environmental groups have denounced the Government’s decision due to its high risk posing an irreversible damage to the world heritage site. The Great Barrier Reef Marine Park Authority (GBRMPA) approved the dumping of 3 million cubic metres of dredge spoil in the reef marine park

The Australian public has been outraged with the approval. Last year, the United Nations downgraded the world heritage site into the endangered list.

Protesters in mascots against dumping on the reef. (Photo: AAP)

GBRMPA expedited a crisis communication in an attempt to ‘enlighten’ and ‘pacify’ the public.. Its chairman, Russell Reichelt,  has written an article at the academic online paper –The Conversation –  to justify the approval. He said the decision is based on comprehensive study and sound judgment that will not do any lasting harm to the heritage site. Discussion has been open to the public since March 3. Reichelt answers the queries himself although readers– composed of engineers, scientists, researchers, and ordinary citizens — are neither convinced nor impressed with the attempt to “gloss over” the real issue.

Observers said, there is something fishy at the sudden turn around of decision considering the warnings over sediments dumping.

Greenpeace  also found a document that questions the integrity of the decision. It shows that GBRMPA feared the dumping would annihilate the barrier reef. However, the Environment Department ignored the warnings and pressured the marine park authority.

Greenpeace campaign poster against Adani group

Indian firms- the culprit

Furious tour operators and Greenpeace are pointing fingers at the Indian mining tycoons as the culprit of an impending catastrophic disaster awaiting the vast expanse of corals.

Association of Marine Park Tour Operators President Colin McKenzie, the peak industry lobby group covering tourism in the World Heritage-listed reef region, accused the marine park authority of pandering to politicians and for allowing Adani group to undertake a risky business.

“The biggest culprit is Adani, an Indian corporation that wants to build Australia’s biggest coal mine in the Galilee Basin in central Queensland, and needs the dredging to allow huge coal ships to access their proposed new coal terminal at Abbot Point to send their coal overseas,” Greenpeace said.

Related story HERE

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Carbon tax repeal faces hurdle

Re-posting:

When Australia’s Prime Minister Tony Abbott won the election last year, his priority agenda included the repeal of carbon tax. Following his oath-taking, he wasted no time to abolish the Australian Climate Council. Climate-related projects introduced by the Labor Government were scheduled to be scrapped shortly.

On Monday, his Government’s plan faced a drawback. The Upper House blocked his attempt to repeal the carbon tax by rejecting the passage of a billl to abolish the Climate Change Authority.

The Labor-Green coalition knocked back the legislation to disband the authority. The authority was created during the Julia Gillard Government to oversee the implementation of the clean energy laws, which include the carbon tax.

The bill was amended by Labor Senator Louise Prat, but  defeated on the  second reading- 38 votes against 32. It can be re-introduced in three months, but a second rejection would trigger a double dissolution.

Australia’s carbon tax puts price on industrial carbon emissions.

The Greens Senator Christine Milne has already announced victory to supporters although Environment Minister Greg Hunt is unhappy about the outcome “as if an election was never held,” he mumbled.

The Abbott Government knows that any attempt to push for the carbon tax would slow down business and investments- an “industrial slow down.” Hunt had accused Labor of “blocking a tax on basic state services with hospitals, schools and police all impacted by the carbon tax.”

While environmental groups are celebrating, the Australian Conservation Foundation said the authority would now be able to continue its work until the new Senate takes over in July.  Milne said the government could bring this legislation back before the Senate in three months taking into account of the new composition of the legislative body.

Australian Greens Senator Christine Milne

Milne said the authority could continue to provide Australia with high quality independent advice on global warming and a rigorous review of the renewable energy target. She told reporters,“I am delighted that today the Senate has defeated Tony Abbott’s push to try and tear apart a science-based recommendation and go with his anti-science obsession.’’

The authority is mandated to govern Australia’s mitigation policies, undertake reviews and make recommendations on various issues, including emissions reduction targets and carbon budgets, renewable energy targets, the carbon farming initiative, and national greenhouse and energy reporting system.

Abbott disbanded the  Climate Council shortly after he was sworn in as the new prime minister  last year. The council was commissioned to  provide independent and authoritative climate change information to the Australian public “based on the best science available.”

Blog Link: The Green Journal at Asian Correspondent

Environment Minister ignores plea from the Southern Ocean

UPDATE: Environment Minister Greg Hunt replied to the letter sent by Captain Peter Hammarstedt of The Bob Barker, but unable to help in pressuring the Japanese to stop whaling.

Re-blogging this post on March 3.

The “Relentless Operation” of the Sea Shepherd Australia (SSA) is in distress following the relentless attacks of Japanese whalers in the Southern Ocean.

Captain Peter Hammarstedt of The Bob Barker alleged the Japanese fleet has assaulted its vessel for the third time this season and has sounded alarm to the Australian Government asking for rescue. However, the distress call has fallen on the deaf ears.  .

Sea Shepherd’s fleet observes this Minked Whale swimming around the vessel. (Photo: Tim Watters)

The Captain also asked the New Zealand Government to cooperate in the mission to protect the Southern Ocean Whale Sanctuary.

The Japanese are accused of throwing steel cables on Bob Barker’s bow, an attempt to disable the propeller and rudder of the ship. On Sunday, the whalers are also accused of throwing bamboo spear at the crew of the small boat rescue. The Bob Barker decided to launched two small boats to defend their ship and attempt to cut the steel cables during the assault. It sustained damage of the antennas of the small boat in the process, Capt. Hammarstedt claimed.

The helicopter’s GPS indicates the northern border of the Antarctic Treaty Zone (Photo: Eliza Muirhead)

Hammarstedt said his vessel is carrying nine Australian volunteers who have joined the cause in protecting the Southern Ocean Whale Sanctuary.

Earlier on Sunday, the Sea Shepherd Fleet located the Japanese factory vessel for the fourth time “with a dead, protected Minke Whale onboard, and blood running from the side of the ship. Slabs of whale meat were also filmed on the deck, along with the severed head of a recently butchered whale. “

Hammarstedt wrote a letter to Environment Minister Greg Hunt  two weeks ago and bewailed how the minister ignored his plea. He said “the Australian government has failed in its duty to take any action against the poachers of the Japanese whaling fleet. “

Despite broken promises of the Government to protect the Southern Seas, the Sea Shepherd will remain relentless in its mission to guard the vast expanse of the sanctuary, “enforcing international conservation law when governments refuse to take action.”

Captain Peter Hammarstedt of The Bob Barker (Photo: Marianna Baldo)

Captain Paul Watson also announced earlier that Sea Shepherd cannot be stopped. He said Sea Shepherd is not only a group, but a movement of thousands of people pursuing their passion and courage to defend and protect the oceans.

Blog Link: The Green Journal at Asian Correspondent