AFNR315: Adani Group Project Analysis - Revenue, Environment, Title

This report provides a comprehensive analysis of the Adani Carmichael coal mine project, a large-scale mining venture in Queensland, Australia. It examines the various revenue streams for the Australian government, including investment, taxation, and royalties, and discusses the potential conflict of interest arising from these financial benefits. The report explores the environmental implications of the project, such as carbon emissions and sediment dumping, and the arguments for and against extinguishing native title for the project's development. Additionally, the report considers the energy demands of India and the role the project plays in meeting those demands. The report references various academic sources to support its analysis, providing a well-rounded discussion of the project's economic, environmental, and social impacts.

Adani group

Contents
Introduction.................................................................................................................................................3
Revenue stream for government from Adani project...................................................................................3
Should Australian government extinguish native title for Adani coal mine?...............................................4
References...................................................................................................................................................6

Introduction
Adani mining project, also known as Carmichael coal mine project, is among one of the
biggest mining projects in the World. Whole matter is controversial as many environmentalists in
Australia are protesting against it (Meng, Siriwardana and McNeill, 2013). Although government
is in suppose of Carmichael project but legal troubles are not ending for the Indian mining giant.
This assignment will discuss about different revenues streams which State and federal
government will receive; issue of conflict of interest will also considered in the file. Ideas like
environment protection for future generation and extinguishing native title for Adani coal mine
will also be explored in this project. An explanation on environmental issues like carbon
emission and dumping of sediment will also be included in the report. In the end, their will a
discussion on India’s growing demand of energy as this factor is forcing Indian firm to enter in
new markets.
Revenue stream for government from Adani project
Australian government is in favor of Carmichael project because they understand that
Queensland’s Galilee Basin can help country in earning billions of dollars (Amos and Swann,
2015.). This area is not used for any purpose currently but it has capacity to generate huge
amount of revenue and jobs also, for Australian people. Below will be few popular source of
revenue for State and Federal government:
Investment – Adani mining will invest more than AUD18 billion; this whole amount will be used
for developing infrastructure at the location and it will generate many indirect source of revenue
collection for Government. For example, investment will generate around ten thousand jobs. They will
get paid for their services and Government will be able to earn tax from their income. Beside jobs, an
investment of AUD 18 billion will provide business opportunities for many small businesses. Their
earning will be another source of income as it will also be taxable.
Taxation – Adani mining is going to earn a lot from this project as they will use this coal for
making electricity which will be sold in India and Bangladesh also. Whatever company will earn from
export will be taxable; it is very clear that Carmichael project is huge deal for Adani Group and they

are going to earn a lot from it. Australian authorities are also going to levy various kinds of fines
on them if they will break any rule. This will be uncertain revenue which can be small or big.
Royalty – Beside company tax, royalty is going to be another major source of revenue for
Government. According to estimation, State authorities has earned around USD 12 billion in the name of
royalty. With such a major mining project, Queensland State will definitely earn a lot and for a long
duration as Carmichael project is a big project (Guj and at al., 2013).
Conflict of internet due to revenue stream
State and Federal government will may see a conflict of interest situation because Queensland
State will argue that they should earn all the benefits that is extracted from their region but Federal
government will also like to have a share from Royalty amount as they are backing this project from
initial stage. Fines and penalties will be a point of difference between both Governments as Carmichael
project is not only a State level project, it has huge influence of Federal Government also. The
amount earned through corporate tax is another issue where chances of conflict are possible. If
Federal Government will try to earn money through royalty then State may also proposal to
increase their share in corporate tax as Queensland will make more contribution in earned
revenue.
Environment protection for future generation
Various researches have shown that Coal burning is not good for environment as it
increases pollution which ultimately enhances health risks. Burning coal means emitting huge
amount of carbon dioxide; it leads to global warming. Government wants to earn money so they
can provide better healthcare and education facilities to their people. They also want to generate
jobs providing livelihood is responsibility of Government. Without using natural resource,
production and manufacturing activities are not possible. Government is thinking about short
term goals but it’s true that they are harming environment without considering future
implications (Steffen and et al., 2017).
Should Australian government extinguish native title for Adani coal mine?
The whole fight between allowing or not allowing Adani mining to extract coal from
Queensland’s Galilee Basin is due to the harm which this project could do to environment.

Extinguishing native title would clearly mean that success of Adani’s project. Looking at the
current circumstances, Australian government should extinguish this title and show green light to
Carmichael project. No one knows what will happen in future; it is better to provide facilities to
vulnerable people without thinking much about future. This project will provide electricity to
millions in Asian region which is suffering from basic amenities (What are the facts about Adani's
Carmichael Coal Mine?, 2020). Many people in this region have never been able to use electricity
in their whole life. The land, which will be used of mining, is not agriculture land. It is basically
an underdeveloped area where issues like unemployment; poor infrastructure is making people
life complicated. Australian people will get benefit from huge investment and money earned
from this project can be used for improving life of First peoples.
It is true that burning coal is not good for environment but, at the same time, one cannot
deny the fact that basic facility like electricity is important for removing poverty and giving
better healthcare service to the society. Adani Group will earn from this project as they are
investing amount so company can get approvals and this long awaited project. They are
corporate firm; people should not expect them to work like NGOs. When an organization put so
much at stake, for such a long duration, then should be awarded with earning billions in profit.
Many believe that this is a wrong bet from Indian mining giant as producing electricity from coal
is getting outdated and renewable sources will be prime source on energy in upcoming time but
Adani mining is still taking a big risk because they understand countries like India and
Bangladesh will generate huge demand in future which cannot filled by renewable sources.

References
Books and Journals
Amos, C. and Swann, T., 2015. Carmichael in context.
Guj, P. and at al., 2013. How to improve mining tax administration and collection frameworks: A
sourcebook.
Meng, S., Siriwardana, M. and McNeill, J., 2013. The environmental and economic impact of the
carbon tax in Australia. Environmental and Resource Economics, 54(3), pp.313-332.
Steffen, W. and et al.,2017. Risky business: Health, climate and economic risks of the
Carmichael Coalmine.
Online
What are the facts about Adani's Carmichael Coal Mine? 2020. [Online]. Available through <
https://www.miningpeople.com.au/news/what-are-the-facts-about-adanis-carmichael-coal-mine
>.