Mining is back QLD! 16.5 billion dollar project approved!

Discussion in 'Property Market Economics' started by big max, 6th Jun, 2017.

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  1. big max

    big max Well-Known Member

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    big max, 6th Jun, 2017
    #1
  2. JL1

    JL1 Well-Known Member

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    "Forecast to produce up to 60 tonnes a year" .... I wish that were true :(
     
    JL1, 6th Jun, 2017
    #2
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  3. Phase2

    Phase2 Well-Known Member

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    Phase2, 6th Jun, 2017
    #3
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  4. paulF

    paulF Well-Known Member

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    120 Million dollars in royalties to Adani, the state government gets 2 million... and no , it will not create 10K jobs, it will put at risk more than 70K jobs that reply on the Great Barrier Reef... I think this is going to get dirty ...
    Palaszczuk and Turnbull governments are Adani's lonely fans
     
    paulF, 6th Jun, 2017
    #4
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  5. JDP1

    JDP1 Well-Known Member

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    Ive been a bit critical of the current mob in power in qld, but this statement by the premier of QLD is absolutely critical:

    "What I'm saying very clearly to the rest of the state and to other companies, that you're welcome to invest in Queensland, that we have a government that will back you 100 per cent," Ms Palaszczuk said

    If that is not true, sydney and mel will continue to eat qld's lunch, as they currently do and have in the past.
     
    JDP1, 6th Jun, 2017
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  6. Depreciator

    Depreciator Well-Known Member

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    A figure I heard the other day was about 1,500 long term jobs after the initial construction. So bugger-all compared to the tourism industry. Approval was always going to happen with the weak kneed state and federal govts. Getting someone to loan them the money is a much bigger hurdle with Adani's track record.
     
    Depreciator, 6th Jun, 2017
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  7. Phase2

    Phase2 Well-Known Member

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    God help us all if the "Australia Institute" ever have any influence on policy decisions...

    The royalty holiday is an agreement to pay a discounted royalty while production ramps up, and the discounts are paid-back with interest in the future... this is to be supported by a bank-guarantee from Adani (to ensure the QLD govt gets their $ back).

    The full royalty rate for coal (under $100/t) in QLD is 7%. So if Adani were producing 10Mtpa at full production (when the holiday ends) they'd be paying about $70M/yr if the price was A$100/t. A far cry from the $2M that's being espoused...

    I have no doubt that this will get dirty, although Alpha is more remote than Boggabbri and Whitehaven. I wonder if the protestors will be able to find it?
     
    Phase2, 6th Jun, 2017
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  8. big max

    big max Well-Known Member

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    big max, 6th Jun, 2017
    #8
  9. PandS

    PandS Well-Known Member

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    Sign off is one thing, funding is another, until someone willing to lend them the cash I can't see it going ahead.
     
    PandS, 6th Jun, 2017
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  10. Sackie

    Sackie Well-Known Member

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    Alright boys, ill take one for the team - the cash is on its way.
     
    Sackie, 6th Jun, 2017
    #10
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  11. spludgey

    spludgey Well-Known Member

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    Won't happen. I'm surprised that they keep pretending like they'll build it when the economics just don't stack up.
     
    spludgey, 6th Jun, 2017
    #11
  12. Phase2

    Phase2 Well-Known Member

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    I'm betting that any funding will be through the parent company and no deals will happen locally.
    The business case for this project is that it will support Adani's Indian energy business with "cheap", decent quality coal and Adani will have some control of the quality and quantity supplied to it's Indian operations. Supplying the Indian energy network = profitability

    Adani's biggest hurdle won't be the standalone economic feasibility of this project, it will be convincing lenders to increase the already-heavy, liability side of it's balance sheet.
     
    Phase2, 6th Jun, 2017
    #12
  13. JDP1

    JDP1 Well-Known Member

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    indeed...dont know exactly when, but the cash is certainly on its way.
    Both the state and commonwealth governments will do anything to get this over the line.
     
    JDP1, 6th Jun, 2017
    #13
  14. big max

    big max Well-Known Member

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    Money might also come via a Chinese investment into the Indian company ...
     
    big max, 6th Jun, 2017
    #14
  15. Sackie

    Sackie Well-Known Member

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    Well gents, certainly hope this gets across the line. Time will tell.
     
    Sackie, 6th Jun, 2017
    #15
  16. hammer

    hammer Well-Known Member

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    The elephant in the room is that solar is on the cusp of being cheaper than coal.
     
    hammer, 6th Jun, 2017
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  17. Invest_noob

    Invest_noob Well-Known Member

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    Invest_noob, 6th Jun, 2017
    #17
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  18. PandS

    PandS Well-Known Member

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    you don't know the history of the Indian and the Chinese?
    Just say they dont like one another much :)
     
    PandS, 6th Jun, 2017
    #18
  19. Coxy89

    Coxy89 Well-Known Member

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    Until they find some investors willing to bankroll this thing its all a bit of a pipe dream isn't it. Pretty much every bank has come out against it and they can't fund it themselves.

    Take the subsidies from these guys and pump it into renewables and see where that gets us. Plenty of Australian unis are making efficiency breakthroughs on solar panels etc. We should be leading the charge on renewables as an emerging industry. Research, manufacturing, install jobs etc galore
     
    Coxy89, 6th Jun, 2017
    #19
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  20. LibGS

    LibGS Well-Known Member

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    Even if it gets up, this has stranded asset written all over it.
     
    LibGS, 6th Jun, 2017
    #20
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