The Adani Enterprises, which is looking for a $684 million cheap government loan to build a giant coal mine in Australia, is likely to hit a hurdle as the Left-leaning Labour is likely to be re-elected in a state poll, reported Reuters.
Although the funds would come from the federal government, Queensland state retains the power of veto over applications made for projects inside the state
The Adani Enterprises, which is looking for a $684 million cheap government loan to build a giant coal mine in Australia, is likely to hit a hurdle as the Left-leaning Labour is likely to be re-elected in a state poll, reported Reuters.
Queensland state premier Annastacia Palaszczuk Labour party’s, which originally supported the Adani coal mine project, made an about-turn in the run-up the state election after facing strong challenge in returning to power.
“Queensland state premier Annastacia Palaszczuk, who originally supported Adani’s application for the federally funded loan to build a rail coal haulage line, said three weeks ago her government would veto the concessional loan,” reported news agency Reuters.
The mine’s location 400 kms (250 miles) from a Pacific Ocean shipping terminal means the challenge of financing infrastructure costs has been at the forefront of debate over the project’s economic viability.
Although the funds would come from the federal government, Queensland state retains the power of veto over applications made for projects inside the state, reported the news agency.
A number of lenders, including Deutsche Bank and Commonwealth Bank of Australia have publicly said they will not provide funding, given opposition to investment in fossil fuels.
Several protests were held across Australia against Indian mining giant Adani's proposed 16.5 billion dollars Carmichael coal mine project, which has been delayed for years over environmental and financing issues.
Rallies were held in Sydney, Brisbane, Melbourne, the Gold Coast and Port Douglas in North Queensland where thousands of protesters took to streets as part of a National Day of Action.
Adani and the Queensland government have highlighted that the mine will prove beneficial for the region. This week the company announced it would base more than 1000 fly-in, fly-out workers in both Townsville and Rockhampton.
However, environmental activists are concerned about the potential impacts to the Great Barrier Reef as the coal will be shipped through areas close to the national icon. There are also concerns the coal burned will contribute to climate change, which is the biggest threat to the reef.