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New Adani mine rehabilitation plan falls short, raises questions

Lock the Gate Alliance says the new Carmichael Plan of Operations for mine rehabilitation raises serious questions about the financial readiness of Adani to develop the mine in Central Queensland.

A standard plan of operations should cover rehabilitation for 5 years of construction and mining, but the Adani plan is for 6 months only and encompasses only the following:

1) Re-establishment of site signage
2) Re-commissioning, expansion and operation of existing temporary camp
3) Use of existing tracks and muster points within the earlier exploration domain

A full five-year plan of operations would have required Adani to obtain a very significant financial assurance – which has been estimated at up to $2B for the full 60Mtpa project. 

Carmel Flint from Lock the Gate Alliance said “This bizarre 6 month plan of operations indicates that Adani are not prepared to start work in earnest, and, more likely, that they doubted their own ability to obtain the financial assurance required.
“This is not a standard approach, and it raises more uncertainty about the viability of this mine.

“Adani keep saying they are ready to start this mine, but their actions keep telling us otherwise. 

“Their failure to deliver a standard 5-year plan of operations for mine rehabilitation can only be read as yet another sign that Adani are not equipped to undertake this project.

“We’re calling on the Queensland Government to reject this weak, short-term Plan of Operations and prevent any work starting until Adani can provide a detailed 5-year plan setting out how they will undertake all mining and rehabilitation.

“Adani should be required to put up a full upfront cash bond of at least $2B for the cost of rehabilitation, to prevent taxpayers ending up with the bill if they walk away.

“Instead of putting taxpayers at risk of footing a massive bill for the costly damage this mine would cause, especially to groundwater, our governments should be investing in renewable energy to create regional jobs in an industry with a long, bright future” Ms Flint said.

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