Adani Coal: Environmental and Financial Impacts Analysis Report

This report examines the Adani Coal incident in India and its potential impacts on Australia, focusing on the proposed venture in Central Queensland. It highlights the Adani Group's history, including the 2016 accident at the Mundra power plant and subsequent environmental damage. The report assesses the project's potential economic benefits against significant environmental concerns such as coal spills, illegal dredging, water pollution, threats to indigenous rights, and climate change impacts, particularly on the Great Barrier Reef. It discusses research methods, financial and economic beneficiary aspects, and both positive and negative impacts of mining projects in general. Furthermore, the report explores movements against Adani, actions to connect labor members, and provides recommendations for mitigating negative effects and ensuring sustainable practices. The report concludes with a summary of findings and emphasizes the need for responsible mining practices.

Running head: APPLIED RESEARCH
APPLIED RESEARCH
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Overview of the Adani incident.................................................................................................3
Overview of Adani group...........................................................................................................4
The impact of coal spill devastation...........................................................................................5
Illegal dredging and cleaning.....................................................................................................6
Water pollution disaster.............................................................................................................7
Trashes indigenous rights...........................................................................................................7
Wrecking climate.......................................................................................................................8
The Great Barrier Reef Effect..................................................................................................10
The method of research............................................................................................................11
Financial Beneficiary Aspect...................................................................................................12
Economic Beneficiary Aspect..................................................................................................14
The positive effects of mining in General (Pros of Mining Projects)......................................15
The Negative impacts of mining (Cons of Mining Projects)...................................................16
Build some effective movement against Adani.......................................................................17
Taking actions and connect the labour members.....................................................................19
Recommendation......................................................................................................................20
Conclusion................................................................................................................................21
References................................................................................................................................23

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Topic: Adani Coal incident in India and the rising problem for Australia, as the
company has proposed to start a new venture in Central Queensland, Australia.
Introduction
Mining projects are considered to be one of the best sources of income generation and
contributor of goods and services in the country. Mining projects if planned and monitored
carefully accrue positive benefits to the country under consideration. These benefits generally
include economic, technological and financial benefits (Moore 2018). It helps in opening up
huge economic frontiers in the long run through the building of short-run employment cycles
in the economy. Further, it helps in the excavation and production of huge amounts of
minerals and metals which are further used for extremely useful purposes especially in
already developed countries (Froylandet al. 2018). However, in certain cases, the mining
projects are not able to cater to the costs incurred in the form of huge amounts of investments
and are unable to pay back the loans or carry out the required amounts of refinancing for the
investments done. This, in turn, causes the reduction of the values of shareholder equity for
the existing shareholders of the firm. In the long run thus, the employment rates generated by
these mining projects are lost resulting in reduction of employment rates below the original
level.
The Adani Coal Project is one such case which resulted in long-term financial loss for
India and is now trying to diversify through investment in Australia so that the amount of
coal excavated can be exported to India to yield further benefits (Rikhtegar et al. 2014).
Although this firm is being expected to accrue short-term benefits in the form of increased
taxes and royalties to the government of Australia, and the generation of employment, in the
long run, this project is being expected to fail at large (Currell et al. 2017). The various
aspects of this project are discussed and studied in detail in this report and the financial,
economic, environmental impacts of this project are also studied. Further, the rising number

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of movements against this project and the impact of this project on the Greta Barrier Reef are
also evaluated.
Overview of the Adani incident
The Adani accident was one of the devastating incident in India as the coal-fired
power plant in Mundra in Kutch district was under threat. The accident happened on 20th
April 2016 in 4600 MW power plant unit. The situation was unexpected and some of the
people died in that incident. The situation was not in control and protective measures were
not taken as the situation was so spontaneous. The emergency control process was there in
the coal fire plant but the time of execution was not implemented due to the scarcity of the
problem. Hot water splashed from the pipeline and 21 workers were burned through the
process (Langham & Mathias, 2018). 13 people were in critical condition and they were
shifted to a hospital in Ahmedabad by the office administration. The risk management
authority worked promptly but the severe condition of those employees turned in death. One
person died on the way and six other died afterwards during the treatment. Out of 13 people,
the company lost their 7 people and this was a complete threat to the employee security and
their effective work culture. On the accident day, nine units of Mundra Power Plant, hot
water splashed from the vent in a flash tank, where some streams are normally allowed to
vent. There was a two-day off before the incident, so the process of security was questionable
at that time.
The company is liable for their employees’ health and safety process and in this case
Adani Group needs to take the responsibilities. Through, the company tried their level best to
protect these labours but the disaster could not be avoided. A cross-functional team was
created at that time to investigate the matter. High-quality treatment was provided at that time
but the consequences were not changed. So the reputation of the company has not formed that
point in time. Adani Group is the biggest Indian multinational conglomerate and giant source

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of energy, resources, real estate, defence, aerospace, logistics and financial services. The
group is India's main port originator and operator. So the expansion of the business is large
and they try to enhance their business level in Australia.
Overview of Adani group
Adani group is the leading largest house with the revenue generation of $11 billion.
The company was founded in 1988 and the application of global integrated infrastructure was
high, and over the base of this, growing and developing aspects are formed. The betterment
of society and ensure development of that is the prime focus of the company. They have
some responsibilities to cater and they have taken some initiatives for that. The values of the
Adani group are Courage, Trust, and Commitment. Courage is the only thing that motivates
them for the accomplishment of their short and long-term goal (Stopadani.com, 2018).
Leaders of the company trust their employees and that will initiate a value of employees.
They believe in their stakeholders as well. The commitment of doing work and promises to
adhere high standard of business is the basic value of the company.
The values are ensuring the revenue generation of the company and that accumulated
in US$ 11. 674 billion as per the financial year of 2017. The total asset of the company is
US$ 27.076 billion (FY 2017) and that is the reason penetration in other nations is projected.
More than 11,000 employees are associated with the company and that will encourage the
company to leap forward and make some effective steps in progress. There is some allegation
over the company as well like they diverted the fund and used in Dubai Shell Company and
the impactful issue of Gujarat accident. The health and security of the company is the main
aspect in that case. The vision of Adani group is to spread their business globally and
enhance their speed of execution and providing quality operation in business (Stopadani.com,
2018). The prime cultures of the company are passion. Results integration, dedication and
entrepreneurship. The process of performing through enthusiasm is the culture of this

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process. The results are measured by constant achieving of goals and they are improving in
that aspect. The process of finding new opportunities and initiative for the development of
business (Jamero et al., 2017). The problem arises in that situation is the penetration of the
company in Australia and their effect on the Great Barrier Reef. There are some initiatives
that Adani has taken for Australian civilians but the environmental damage will be
confronted due to the company is severe and that is the main highlighting aspect of that
research.
The impact of coal spill devastation
There were different issues that highlight the history of Adani and their disruption,
fraud and corruption cases are considered a horrific record for the organisation. The company
is currently seeking to build $22 billion Carmichael Coal Mine and a Rail project next to
Great Barrier Reef (Stopadani.com, 2018). The Indian energy giants will destroy the
ecological balance and mining effect will hinder the ecological system as well as the overall
destruction of nature (Raj, Mathews & Edward, 2015). The tourism will be affected and
ocean pollution rates will be high. Coal spill devastation is one of the trending issues on that
time. In the year of 2011, one of the chartered ships of Adani Enterprise sunk off at the
coastal area of Mumbai. The clean-up process has not done by Adani group since then. The
spill destroyed the mangroves, polluted beaches, and that encountered a serious damage in
marine life and tourism industry.
The issues highlighted imprecision and negligence of the company and that impacted
on the social life. 60,000 tonnes coals and massive amount of oil mixed in that case and entire
marine life is under threat (Stopadani.com, 2018). The Adani authority didn’t take any
responsibilities and coal devastation marked as red in their maintenance history (Edward et
al., 2018). The same situation can be repeated in Australia and that is the key concern of the
civilians and they raise some movements against Adani. In Australia, the Carmichael Mine

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would enhance to 120 million tonnes per year of greenhouse gas releases to the Earth’s air,
mostly from the burning of the coal. Expansion of the mine and related substructure would
also allow the advancement of numerous other inferior quality thermal transfer mines planned
for the distant and so far unexploited Galilee Basin.
Illegal dredging and cleaning
The environmental harm and recorded hazards are creating problems for Adani as
well as for the entire nation. Due to non-cleaning situation, 75 hectares of protected
mangroves were ruined. Flattened sand dunes and blocked waterways were the major
problem in that case. The local villagers were catastrophic and their entire professions are
based on fish farming. The situation was impacted on the land as they come barren. Illegal
dredging like black money in coal costing and coal fire power makes most of the illegal
hiring and money lending (Stopadani.com, 2018). There are six Adani Group companies are
in the exploration for deceitful use of quality and, henceforth assessment, of coal smuggled
from Indonesia, permitting them to grow with accusing higher values, demanding public
haunts, and lashing up prices for Indian energy and electricity for customers. There is
concrete substantiation that they’ve already ragged off their clients to the turnover $200
million AUD (Stopadani.com, 2018). These are some situations that initiate mistrust over the
company as they have already committed so many hazards to the company. There are some
long and deceptive campaigns are going against the Carmichael mine and Adani, but the
process is not effective as the government support is there with the company. In case of
trading diamond and gold jewellery, Adani ripped odd tax payments and laundering money
while trading those items. A special investigation was taken place at that moment but the
company is not accountable in that case.
In the coastal town, the incident of Adani has made a severe nightmare for the
employees as well as the environmentalists. The groundwater became saline, fish stocks are

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annihilated and that damage the entire scenario of the environment. In Australia, "Prosecute
Adani" stop the mining process has started and the secretly dealing with Queensland's
groundwater is the concern issue in that case. There was no respect of legislation or the
implementation of the law. The groundwater is the surviving aspect for the human beings and
if it not being stopped then entire consequences will be drastic. The process of drilling is not
acknowledged by the local civilians and raise their banner and slogan against the entire
process.
Water pollution disaster
This is the only movement that can save the water of Australia. Adani draws a billion
litres of water from the great artesian and other precious basins. The level of water is needed
in those places are not adequate. The scarcity in water problem is being vivid in such cases.
The company also not taking bother about the water uses as they utilise as much water as
they need. The situation is not productive for the nation as the required amount of water is
needed in that process is not levelled in the right way (Jolley, 2018). Each year, the company
extracted billions of water form ground. The system of groundwater is under threat and that
produce a permanent drop of water level. The mine will drain water from rare Doongmabulla
and Mellaluka Springs, both these places are ecologically significant. Extract water from
these places is basically losing last hope for the nation. The supportive native flora and fauna
for the last millions of years is the heritage of the nation and that will be under threat at that
moment.
The use of water will be a threat for the Great Artesian Basin as this is the most
important water source for Australia. Half of Australia is catered by that so the effectiveness
of that source is also important. The spoil and damage of land along with the water is also
considered a loss for the nation and they have allocated some movements but the execution is
the major problem in that case.

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Trashes indigenous rights
The ancestral lands, waters and cultures of indigenous people are the concerning
aspect of this case. The local Wangan and Jagalingou people are not agreed with the project
and that impacted over the expansion of business (Jolley, 2018). Adani is pushing their plans
and ensures the water laws in business. The native and indigenous position of the company is
important and that affect the tradition of the nation, thus they protest against the company.
Queensland Government also helped to clear the last major hurdle for Adani so that it
can proceed with the $22 billion projects in Australia. Two types of groups are fighting to
stop this project, first one is telling about the bankruptcy of Adani and the second one is
telling about the Great Barrier Reef. Australian Conservation Foundation is assumed about
the court challenge for the aborigine people so that they can support the judicial process
(Stopadani.com, 2018). The rights of indigenous peoples to the full enjoyment of all human
rights, non-discrimination, self-determination and autonomy, maintenance of Indigenous
institutions, and the right to a nationality. Freedom from genocide, forced assimilation or
destruction of culture, forced relocation from land, right to integrity and security of the
person, and right to belong to an indigenous community or nation. Information and labour
rights provide the right to education, including to run own educational institutions and teach
in language; cultures to be reflected in education and public information; access to media
Wrecking climate
Mining is the very first step in the life cycle of the coal and when the coal mine starts
producing coals, the communities are pressurised to leave their land off because of various
reasons like expanding the coal mines, subsidence and coal fires and overused of
contaminated water. Coal mine wrecks the environment and the climate by destroying the
soils and forests. After mining, the problem leaves behind and the problem persists for
decades (Pandey, Agrawal & Singh, 2016). In Australia, aborigine people face the issue of

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coal excavation and Australians Greenpeace campaign tries to help the communities by
stopping the coal mines and spend up to the shift to 100% clean and safe renewable energy.
Adani Group wants to enter Australia and it would also harm the climate and ecosystem. At
first, strip mining harms the trees, topsoil and the plants in the nearby areas as the mountains
blast apart to find out the coal seams. In addition, coal mining also harms and contaminates
the water. Coal mining increases the chemical contamination in the water. Australia is
surrounded by mainly barren lands and the coal mines uproot the trees and make the area
barren. In the underground, the longwall mines, room and pillar and columns are used to
make the structure of the ground pillar. When mining is done, it makes subsidence and the
water is drained away. Coal mines also create the methane and carbon-dioxide disrupts the
climate over the long time span (Niu et al., 2018).
In Australia, the people may face the issue of pollution when they observe more
burning coal. Coal may lead to the extreme weather in Great Barrier Reef and it may lead to
bleach the reef further. Adani coal mine will be closer to the Great Barrier Reef and Australia
is at the bottom list in reducing the greenhouse gas emission. Adani’s Coal may cancel out
any good which would be achieved from Australia’s greenhouse emission. Australia has set
the target of reducing the greenhouse gas emission between 2020 and 2030; however, burning
the coal would fail towards achieving the target (Smith, 2017). Heatwaves are number one
among all the natural disasters, droughts, bushfire and floods. The heatwaves and other
weather events in Australia are becoming frequent as the result of recent climate change. As
stated by Gleeson (2017), Adani’s mine may drive change in Australia as burning coal from
the mine will kill large tracts of the Great Barrier Reef in next 20 years. In recent time, the
world is agreed to decrease the carbon emission to reduce the catastrophe of the global
warming. The Australian government is pursuing the Adani’s coal mine and approving the
project may open up the entire Galilee Basin to nine other mines.

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1 2 3 4 5 6
1940
1950
1960
1970
1980
1990
2000
2010
2020
2030
0.25
0.38
0.46
0.52
0.65
0.78
Australia's climate has warmed since
1970s
Figure 1: Australia’s temperature 10 years average (degree Celsius)
(Source: Hendryx & Luo, 2017)
The Great Barrier Reef Effect
Apart from the most widespread and obvious cause of concern regarding the financial
massacre that the Adani project is being expected to cause, the other most important adverse
impact that the project is being expected to cause is the destruction of the Great Barrier Reef.
According to environmentalists, the establishment of the Carmichael mine will cause a
widespread negative impact on the reef by bleaching and raising the temperature of the water
around the reef which prohibits survival of the corals (Terms of Service Violation, 2018).
The undertaking of this project will almost inevitably cause the rise in temperatures such that
this will lead to global warming which in turn will cause massive destruction for the Great
Barrier Reef. Further, apart from indirectly affecting the coral in the Great Barrier Reef with
the increase in the temperatures of the water through mining, this project will also render
direct impacts on the corals of the Great Barrier Reef. It is being reported that the coal mine
will be exported to India through the coast of Queensland from the Abbot Point. This point is
located directly opposite to the Great Barrier Reef and so the intensity of risks related to

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spillages and collisions are heightened. It will also increase the amount of dust affecting the
corals thus increasing the chances of destruction.
Further, there will also be a scenario of increased dredging because of the expansion
of the mine to accommodate larger amounts of coal. This, in turn, will cause stirring up of the
sediments in the portion of the ocean surrounding the reef. This, in turn, will block the
sunlight from the corals and cause them to be destroyed gradually and slowly (Slezak, 2018).
Although, the government of Australia is involved in actively framing policies and
regulations that will help in conserving the crowns of starfish as well as the corals, the total
amount of pollution that will cause adverse impacts on the corals will be too large to be
completely compensated. The adverse impacts on the reefs will also include deterioration of
the health of the reefs. Since the initiation of the project, the reef has bleached thrice already
in one year. The reef is being reported to be at a distance of four hundred kilometres from the
mining area and so the effects will be substantial and no amount of money spent on the
conservation of the reefs will efficiently work or be viable. Pollution of the Great Barrier
Reef will also extend increased damages to the entire ecological balance of the ecosystem of
Queensland as a whole. As a matter of fact, the entire marine ecosystem is already
vulnerable and will further be worsened because of the existing situation. This will, in turn,
harm the climate of the place as a whole and also cause the onset of adverse situations for
people being employed in the mine. The effect is being estimated to be multiplied because of
the vessels that will be passing along the waterways where the coral is situated.
The method of research
In collecting the data for the research, the researcher can collect both primary and
secondary data. In this research project, the researcher has collected only secondary data.
Collecting primary data for this particular research would be strenuous and it would not be
possible to reach to the core of the issue and Adani management. Reaching to the affected