Anti-Coal Activists Rebuked By Adani Boss; What About Jobless In Regional Queensland And Poverty In India?

Anti-coal activists target of Adani boss

Chairman of the Adani Group, Gautam Adani, has directed a strong and scathing attack towards anti-coal activists and Adani protagonists in Queensland and across Australia for caring less about regional Queenslanders and the devastating poverty faced by millions of Indians.

The Indian energy and logistics corporation boss directed his strong rebuke of the anti-coal activists in Australia as the final investment decision approval for the Carmichael coal mine and railway project has been given the go ahead.

“I am proud to announce the project has Final Investment Decision (FID) approval which marks the official start of one of the largest single Infrastructure – and job creating – developments in Australia’s recent history,” Mr. Adani said.

“This is an historic day for Adani, an historic day for regional Queensland, and an historic day for Indian investment in Australia.

“This is the largest single investment by an Indian corporation in Australia, and I believe others will follow with investments and trade deals.

“We have been challenged by activists in the courts, in inner city streets, and even outside banks that have not even been approached to finance the project.

“We are still facing activists. But we are committed to this project.

“We are committed to regional Queensland and we are committed to addressing energy poverty in India.”

Mr. Adani said the Carmichael projects will generate 10,000 direct and indirect jobs, with pre-construction works starting in the September Quarter 2017.

Australia Head of Country and Chief Executive, Jeyakumar Janakaraj, said the company had already invested $3.3 billion in the project including buying the bulk coal handling port at Abbot Point.

Adani signed letters of award for design, construction, operations, supply of materials and professional services.

The biggest deal is with Downer Mining for the construction and operation of the Carmichael mine.

The company has also announced in the past few weeks contracts totalling more than $150 million for railway tracks and concrete sleepers for the planned 388-kms standard gauge rail link between the mine and Abbot Point.

Importantly, these contracts had gone to regional cities to generate jobs – $74 million for railway tracks (Arrium Steel, Whyalla) and $82 million for sleepers (Austrak, Rockhampton).

Mr. Janakaraj announced a further contract for the Carmichael Rail Network linking Galilee Basin mines including our mine to the port of Abbot Point.

This contract is with AECOM, who are regionally based here in Townsville.

The AECOM deal, which covers surveying and design for the rail link, with the company basing 70 people in Townsville.

“But we are building more than a rail line,” Mr. Janakaraj said.

“We are building a line that will open the Galilee Basin, linking that massive coal reserve to markets around the world, generating power, and – importantly – generating many thousands of direct and indirect jobs in regional Queensland.

Oxfam Australia CEO Dr. Helen Szoke said; “Make no mistake, Adani’s proposed mine is a disaster for the world’s poor. More coal will drive more people into poverty through the devastating consequences of climate change and the direct toll of coal burning on local communities.”

However, the Australian charity has come under serious criticism for exaggerating the impact of climate change on global poverty numbers and misleading the Australian public on the percentage of their money being donated to starving children.

On a recent visit to Africa to visit his sponsored daughter, TREN’s editor learned directly from front-line Ugandan officials near the South-Sudan border that another Australian global charity organisation was planning on closing down its child sponsorship program due to the lack of funds from the head office in Australia.

The Charity’s Ugandan director of projects said, “The Aussies are not giving as much as they used to. The priorities of the Australian leaders are being directed into climate change. The children are still in need of food, shelter and education in the Gulu area”.

“In Adani’s case, it will link its Carmichael coal mine to our bulk loading facility at the port of Abbot Point from where it will be shipped to Adani’s power stations in India.

“While some may be looking for ways to leave regional Queensland, we are looking to the future. We are looking to ensure regional Queensland remains a great place to live, work and to raise a family.

To achieve that, Adani is delivering on its promise to address power poverty for hundreds of millions in India and unacceptably high unemployment in regional Queensland.

“To those activists who sit in creature comfort and criticise us, I ask a simple question – what are you doing for those people?”

Further reading:

Major Projects Feasibility Ranking: $22 Billion Investments in Townsville North Queensland

Construction boosts Townsville short to medium term prospects

Development frenzy  emerging between local builder alliance and national property retailers

Kirwan – Top Price Property of the Week – 1 Crown Close – $655,000

Commercial property in Townsville found gasping for owner-occupiers

Magnetic Island – Top Price Property Winner of the Week – 3-5 Endeavour Road – $520,000

Durie Is Out! Gay And Green Thumb Poster-Boy Snapped Duplicity Of Premier On Townsville Water Security

Guide to selling a luxury home

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Townsville 100% FIFO Workforce Aspirations Outlawed

Townsville FIFO Hub

Townsville aspirations to become the Fly-in Fly-out (FIFO) hub for the Adani coal mine is under serious threat as the  Queensland Government has banned 100% FIFO workforces on large resource projects near regional communities.

Minister for State Development Dr. Anthony Lynham said the Strong and Sustainable Resource Communities Bill would prohibit 100% FIFO for operational workforces and prohibit discrimination against local workers.

“The requirements affect large resource projects with 100 or more workers and an environmental authority within a 125km radius of a regional community with at least 200 residents,” Dr. Lynham said.

“The Coordinator-General will administer the Bill and enforce compliance. This includes requiring proponents to produce a workforce management plan and setting approval conditions on these plans on projects where the 100% FIFO prohibition is contravened.”

A recent major projects feasibility rankings report carried out by McLeod Investments and Consultancy exclusively for TREN identified the risks of just one fly-in fly-out hub through Townsville was rated as very unlikely.

The futurist report in early August said “Queensland political stakeholders will seek to spread the “jobs” payoff leading up to the 2018 State election. Adani will accommodate because the company relies heavily on State Labor support and positive state-wide public opinion.

“Knowing these sensitivities, it would be harmful to Adani to erode any of the political capital it has gained in Queensland, especially as the Premier comes under increasing pressure to state a policy position to counter One Nation’s policy for the government to build, own and manage the Abbott Point to Galilee Basin railway network.”

The McINC futurist report also said “Therefore, Townsville’s prospects of having more than 1000 white and blue collar workers based in the City, permanent and FIFO, during the mine operations would be a very favourable outcome indeed for the economy. This scenario, however, is becoming even more optimistic considering the current political and supply-chain exposures.”

The LNP says the government blocked their move to further strengthen the Bill.

The LNP tabled two amendments to the Labor Bill. But LNP Deputy Leader Deb Frecklington said Labor did not support them. The amendments would have mandated companies to consult with local communities within the local government area through the Social Impact Assessment process.

Also in parliament on Thursday Member for Mount Isa Robbie Katter spoke about Dugald River accepting FIFO from Townsville if it cannot fill from Mount Isa and Cloncurry which he said was concerning.

“They say that the Ernest Henry mine in Cloncurry employs only about 30 per cent locals right now, even though it is just outside town,” Mr. Katter said.

“Last month’s figures show that there is 40 per cent youth unemployment in the outback. That is evident also in Cloncurry. Some people in Townsville and Brisbane might celebrate when they get FIFO in those areas, but it takes from our towns.”

Townsville local authorities have been lobbying Adani and the State government to win the exclusive hub FIFO deal to boost its struggling jobs economy.

Further reading:

Kirwan – Top Price Property of the Week – 1 Crown Close – $655,000

Commercial property in Townsville found gasping for owner-occupiers

Hotel managers slam Townsville Council over Double Tree exclusive

Agricultural and water security boost for North Queensland; Hells Gayte Dam $2.2 million feasibility study 

Magnetic Island – Top Price Property Winner of the Week – 3-5 Endeavour Road – $520,000

Durie Is Out! Gay And Green Thumb Poster-Boy Snapped Duplicity Of Premier On Townsville Water Security

Guide to selling a luxury home

Free Subscription Offer

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Click on image above to Join TREN

How to stay up-to-date

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'Keep your kids out...abuse will offend" - Land owner red tape, white papers and green banners put Townsville economy "at risk"

Image: Sign erected in Harvey Range area in Charters Towers 

Lay of the Land

Rural land owners remain uncooperative and the federal government’s innovation policy being deployed as part of the Townsville City Deal is still immature and conservative in its industrial scope, while the Green minority fundamentalist movement is seeking the destruction of capitalism and carbon-based industries in Townsville North Queensland.

Townsville North Queensland is having to battle tooth and nail to realise the ambitious goal of becoming “the place to invest” in Queensland.

As the climate change union and socialist green power converge in coalition to fight the existing establishments of political power, Townsville Mayor Cr. Jenny Hill is saying Townsville is ‘open for business.’

But in Townsville, the “guard dogs and the galahs” are bailing up the postman at the city gates and the farmers in Charter Towers are warning parents with kids “keep out” or “my abuse could offend”.

Nevertheless, the message of hope is getting through; causing business confidence to increase and the predicted property spruikers to bait the hook.

The early adopters are recruiting staff as job advertisements have jumped by 48% on latest reports.

Still, the materials of industry are being challenged at the producers’ gate while the fruit of Northern Australia’s natural resources are again being abandoned in a protracted climate change storm.

But the questions on many property investors lips are directed towards the uncertainties. And the biggest threat to Townsville sustained property growth is this – Is the activist’s actions against industry seasonal or is it the new universal state of doing business in North Queensland?

The minority fundamentalists’ actions could strike a gaping wound however to the faculties of hope, desire and goodwill in the eyes of the Adani Carmichael coal mine, Magnus Resources Battery Gigafactory, and the Singapore Army training area, all of which are depending on billions in capital backing and land supply.

With respect to the largest industrial projects, what could Townsville be risking in economic terms?

These three projects alone are the largest private and non-government investments amongst many investments occurring in North Queensland. Townsville residents are overwhelmingly positive about the impact. But the go-ahead of part or all of the projects is subject to fringe groups individual rights, extreme ideology and the political agenda of disruptive alliances.

Scope of projects

The industries being touted as the next golden age for industry and economics in Townsville are major contributors to the expected drive for population growth over 200,000 in the next few years.

Multiple billions of dollars in defense training, mining and manufacturing contracts make the stakes for the economy, political leadership and industry very high indeed. The collective investment by these companies is over $25 billion with a potential life span of over 50 years.

Adani Carmichael coal mine

The Adani project is expected to bring into the Queensland economy $16.5 billion for the coal mine and $2 billion for the rail line construction to connect the mine from the Galilee Basin to Abbott Point near Bowen, generating an estimated 10,000 jobs over the life of the mine.

Adani says the jobs will be 4000 to build the mine, 3000 to build the rail line while 1400 are expected to work in the mine on an ongoing basis.

The Australian company headquarters has already been announced in the Telstra building in Townsville. The company has already placed advertisements calling for jobs for the Townsville office. The estimated number of jobs Adani proposes to employee in the Townsville office are approximately 500 in total.

Initially, 200 jobs are being created. Jobs have also been advertised in Rockhampton, at the mine site and Abbott Point port at Bowen. Senior investment jobs have been called in Brisbane, Sydney, and Melbourne. The Townsville office will accommodate the remote operations centre as new remote controlled driverless machinery is expected to be used at the mine site.

Adani has already invested $3.3 billion in purchasing the Abbott Point Port. AECOM will employee 70 staff in Townsville to carry out surveying and design of the rail line. The port is located a short distance north of Bowen in the Whitsundays district.

Downer EDI mining has been awarded the largest contract to build and operate the mine in the Galilee Basin. The Melbourne based mining and infrastructure engineering firm is unlikely to impact on the Townsville economy with the $2 billion construction contract as it has an established organisational base in southern capital cities and central Queensland.

Green groups determined to “blockade” the mine site have written directly to the Managing Director of Downer demanding the withdrawal of the Downer relationship with Adani. The Green group warns Downer the “blockade” action will escalate and target shareholders. “Please choose wisely. The world is watching,” the letter concluded.

The fly-in fly-out hub for the mine is yet to be confirmed. Adani has identified Townsville and Rockhampton as the two options so far. With the construction of the mine needing 4000 jobs, it is anticipated that both cities including Mackay will be identified as fly-in fly-out hubs for the sheer volume of people and goods to be transported.

As the mine moves into an operational phase, the fly-in fly-out impact is expected to reduce and one location could be announced as the preferred site. The selection of the operational transport hub will be essential for the ongoing growth of the Townsville economy.

Construction of the mine and employment of the majority workers will be conducted by Downer based in Melbourne. Therefore, the fly-in fly-out headquarters may not be determined by Adani exclusively.

The Indian mining company has placed a loan application for the construction of the rail line with the Northern Australia Infrastructure Fund for $1 billion. The approval of this loan is yet be finalised.

Other critical funding has not been achieved by Adani. The construction of the mine is unlikely to commence for another 5 years, a major projects pipeline report from BIS Oxford Economics has forecast.

Singapore Army Training Initiative

The Singapore Army Training Initiative is expected to generate $2.2 billion of economic impact in Queensland over 25 years.

A KPMG report identified that $36.2 million will go into the Townsville economy per year after the construction is completed. The report also estimated that $143 million will impact the Townsville economy during the first 7 years of construction.

The construction phase is due to begin in 2019 and finish in 2026 at which time the Singapore military will begin training exercises for the next 25 years.

However, the 23 land owners around the existing Australian Army High Range field training area are yet to negotiate a deal with defence. The economic impact to Townsville will reduce and even diminish to negligible benefits altogether if the Singapore Army is forced to move to another region.

Rockhampton is a competitive option as the Singapore military has based its air force for the past 25 years. Also, if the Shoalwater Bay training area is where defence can secure existing Commonwealth land, the Rockhampton region is likely to receive the lions share of the $2.2 billion economic impact.

The Singapore Army is expected to rotate 2000 to 4000 troops through the training facility over an 18-week period each year for 25 years.

Battery Gigafactory

Magnus Resources and its consortium of United States investors and the Townsville City Council is initially investing $2 billion in the 15Gwa battery storage manufacturing factory generating 2000 jobs in manufacturing and supporting a further 5000 indirect through the global supply chain.

The company reports also that the initial project is just the beginning of plans for the 400-hectare industrial site at Woodstock to expand their operations. Construction of the factory could begin within the next 12 months with the consortium already signing off on the pre-feasibility study. Production is expected to begin by 2020.

The gigafactory relies on graphite supply from the Magnus Resources mine in Tanzania. However, the government of Tanzania has created uncertainty around the company’s capital raising capacity due to the Tanzanian government unexpectedly raising taxes on the miner.

Magnus Resources shares have dropped by half and were suspended from trading on the Australian stock exchange. The Magnus chairman, Mr. Poullas said the tax change would have no impact on the Townsville project.

At a nearby site, an independent investor is building a 142-megawatt solar power facility consisting of 450,000 solar panels. It is being constructed at the Ross River Solar Farm on a mango plantation north of Townsville.

Other projects

The Townsville economy is expected to benefit from $1.5 billion in infrastructure projects in the next 12 months. The stimulus coming from the stadium project, roads, water, rail and port investments is an approximate $1.2 billion more than last year, a BIS Oxford Economist shared with an RDA and Infrastructure Association forum last week in Townsville.

Threats to progress

Although the infrastructure projects are positive to the local economy, the stimulus is short term. “At the moment there is a lot of politics. The policy environment can be very toxic,” Mr. Adrian Hart said.

As land owners in the Charters Towers area dig their heels in on the Singapore Army training deal and Green groups disrupt the progress and delivery of the Adani project by threatening more “blockade” protest action on the ground, even more court action and a massive international public relations campaign, the world’s largest coal mine project and the battery gigafactory still have serious supply hurdles to cross.

Red tape, white papers and green banners are literally suffocating the life out large scale industries in Townsville North Queensland.

The impact on public opinion in Australia from protest groups is significant enough for the Indian energy company to undertake a $1.4 million advertising campaign to counter the Green activists across Australia.

Further reading:

Treasurer sparks free market concerns over Domain Central $6 million revamp

Townsville sold out by PM Turnbull Smart City Deal

Turnbull Trio Caught with smoking gun – Townsville Smart City Deal’s Catastrophic Legacy

Townsville Smart City Deal Exposed as National Security Threat

Guide to selling a luxury home

Guide to 22 knockout marketing tips to sell a home

Free Subscription Offer

You’re fired! The best summer. Bugger – Go Digital. Join TREN. It’s Free. Explore more.. Click on image above to Join TREN

How to stay up-to-date

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Battery Gigafactory Global Consortium Investigates Financial Viability of Townsville

Townsville City Council (TCC) has announced they are buying an equity stake in a global investment consortium using council land to build and operate a foreign owned $2 billion battery Gigafactory at Woodstock.

The Council owned land is 40 kilometres west of Townsville on 400 hectares that included the former CSIRO Lansdown research station.

Former senior executive of Macquarie Bank and Chairman of Boston Energy and Innovation (BEI), Mr. Bill Moss said "the consortium is committed to transforming Australia's energy supply."

A similar size battery "Gigafactory" is planned for New York state located at the Huron campus, the home of the computer hardware giant IBM.

The global players

Image: Boston Energy and Innovation (BEI) Chairman, Mr. Bill Moss
Photos thanks: The Australia

The major players in the Townsville Battery Gigafactory investment consortium include:

• Magnis Resources Limited
• Eastman Kodak Company
• C4V incorporated
• C&D Assembly incorporated
• TCC Development Corporation

In a statement to the Australian Stock Exchange (ASX), the consortiums Australian player, Magnis Resources said: "BEI is an ethical investment house specializing in the establishment of sustainable energy storage solutions in an environmentally sustainable manner to curb future energy problems faced by countries worldwide".

The TCC announced that a Memorandum of Understanding (MoU) was signed in April 2017 and that a "beneficial enterprise" development corporation has been established to legally share in the industrial development venture proposing the 15GWh battery manufacturing plant at Woodstock.

Economic benefits

"Townsville has increased the stakes to secure a state-of-the-art battery manufacturing plant and thousands of new jobs with a land offer that will deliver a major return for ratepayers," TCC reported.

The consortium estimates that the facility will create up to 1000 direct jobs and an additional 1000 in new jobs in direct support businesses and up to 5000 jobs in downstream original equipment manufacturing. The plant, once it is completed, could produce 250,000 car batteries per annum, 1 million home battery units or support 300 micro-grids to power small towns.

In an exclusive interview with the Townsville Bulletin, Cr. Hill stated: "the council was working closely with the consortium to meet its requirements for the project with land, power, transport links and workforce availability."

BEI Director, Mr. Corey Cooney said "We are also meeting with Minister Lynham as part of a push to create a new advanced manufacturing hub and smart technology and innovation base here in Townsville. We believe that a battery manufacturing plant is an anchor for that."

In a statement to Magnis Resources, Mr. Cooney said: "The consortium is committed to transforming Australia’s energy security by pledging the new batteries will be cost competitive, better performing, a sustainable supply chain, environmentally friendly and an alternative to current major energy suppliers."

Council land commitment

Ms. Young approved the announcement of the joint venture just this week 2 months after the MoU was signed and announced by the Australia/USA consortium on the New York Stock Exchange.

Image: TCC map of land proposed for Battery Gigafactory

"The TCC today approved a planning report recommending the council offer a portion of land at Woodstock for the proposal which is backed by a consortium led by BEI", the TCC press release stated.

"The land is part of the former CSIRO Lansdown research station, purchased by the council in 2002 to provide for future industrial uses.

The private investment consortium has been considering multiple sites proposed by TCC around the City requiring an area of at least 20 hectares. The 400 hectare Council owned site at Woodstock has rail transport, power and optic fibre services essential for a Gigafactory.

"Under the proposal, the Council would exchange the land for equity in the project that would be controlled under a specially set-up Council business entity and provide the city with an ongoing financial return," Ms. Young stated.

Reportedly a personal friend and mentor to TCC Chief Executive Officer Ms. Adele Young, Mr. Moss says these Gigafactories will be the "first of a series of proposed lithium-ion battery manufacturing hubs globally."

Battery energy and mining race

At least ten battery Gigafactories have been revealed in the past six months. Half a dozen have been planned in the last month across the world including the USA, Germany, Sweden, Hungry, Poland, China, Thailand and Australia in Townsville and Darwin.

Image: President Donald Trump Unleashing American Energy policy
Photo thanks: Hot Copper

The most aggressive player and inventor of the battery Gigafactory is the US billionaire and electric car manufacturer, Elon Musk who produces the Tesla car.

A global race for resources in cobalt and lithium is underway to supply the massive explosion in battery Gigafactories worldwide. Reducing the price of battery energy production and storage is critical to the global supply chain seeking cheaper electric cars and solar energy capture and storage solutions.

If the Queensland and Townsville governments are smart, they will position themselves in the negotiations with MoUs in hand from downstream manufacturing suppliers too.

A deal with an Aussie electric car maker or smart home manufacturing consortium, leveraging Australian engineering, could bring an unbreakable proposal to the global battery manufacturing consortium.

Critical to the plant's success is the anode material used in the manufacturing of Lithium-ion batteries.

Magnis Resources "plans to provide the materials from its Nachu graphite project in south-east Tanzania, which is planned to produce roughly 240,000 tonnes of graphite concentrate annually for a 15-year mine life from 2018."

Is the local leadership up to the task?

With such consumer demand making the offtake financing option key to the investment deal, competition across the globe for this new technology puts the leadership of Townsville in an extraordinary position of great opportunity.

From Townsville's perspective, focusing on stimulus jobs is a long game that builds on securing sustainable new age industries that could position the "Woodstock-Giru Valley" in the global gold rush for clean energy.

Image: Townsville City Mayor Cr. Jenny Hill
Photo thanks: Townsville Bulletin

The TCC land value equity stake could be the start of a portfolio of land/equity deals with an Australian owned and operated Tesla-like business model that could see the modern day Holden Ute back on the streets.

Selecting a suitable site showed the consortium behind the proposal the city was ready for business. “We have to make sure we keep the momentum going behind our negotiations and the fact that we now have a suitable site is a big step forward,” Cr. Hill said.

“The battery plant has the potential to create enormous economic benefits for the city and we are doing all we can to make it stack up.

“In addition to thousands of direct and indirect jobs, taking equity in the project in exchange for the value of the land will generate an on-going revenue stream for ratepayers.

“There is a still a long way to go in our negotiations, but the council is acting quickly to seize the opportunity.”

"In April, the council signed an exclusive MoU with a consortium led by BEI chairman Bill Moss AO which includes ASX Listed Magnis Resources and backed by US companies Eastman Kodak, C4V and C&D Assembly to investigate the financial viability of building a 15GWH battery manufacturing plant in the city," the TCC press release stated.

The consortium is investigating Townsville for the Gigafactory site "because of its infrastructure, location and it forward thinking council."

In a recent statement to the ASX, Mayor Cr. Hill's said, "This proposal if it comes off will be the biggest single stimulus for jobs and economic development in Townsville in decades".

"Townsville's economic fundamentals are strong and the hard work we're doing to sell the city's potential and attract potential investors is paying off and was the reason the consortium has come to the city," Cr. Hill said.

The Gigafactory plant could be operational in just 3 years supplying the car, home energy and utility battery markets but the Townsville bid is still competing with a site in the Northern Territory.

Further reading:

Corporatocracy Officially Launched by Secure Private Capital

Townsville sold out by PM Turnbull Smart City Deal

Turnbull Trio Caught with smoking gun – Townsville Smart City Deal’s Catastrophic Legacy

Townsville Smart City Deal Exposed as National Security Threat

Guide to selling a luxury home

Guide to 22 knockout marketing tips to sell a home

Free Subscription Offer

Click on image to join TREN

How to stay up-to-date

Do you have an opinion about the Battery Gigafactory?

The TREN community wants to hear your story.

Become a subscriber to TREN eMgazine and be the first to receive local breaking stories, analysis and opinions on the Townsville real estate market.

Disclaimer