Resources and Energy Minister Josh Frydenberg said the government would consider using funds from the $5 billion Northern Australia Infrastructure Facility on Galilee Basin coal projects, which could include a railway line from the proposed Carmichael Mine to Abbot Point.
“It makes no sense at all to try to prop up this failed venture with taxpayers' money. Commercially, it’s a total flop and a bad investment," said Shani Tager, Greenpeace Australia Pacific's Reef Campaigner.
"This project has no investors, globally coal prices are falling and 14 international banks won’t touch it. It would cost $16.5bn to build and Adani doesn’t have the money," she said.
“Minister Frydenberg’s comments and the NAIF don’t reflect the new economic direction that Prime Minister Turnbull is setting. This is a fund for projects that are economically unviable and taxpayers’ money shouldn’t be used to prop up coal projects.”
Ms Tager said spending NAIF money on Carmichael would not bring in millions of dollars to Australia via royalties and taxes. Adani’s structure means profits would go offshore and taxes paid to Australia would be minimised.
“Spending Australian taxpayer funds to help a foreign company develop a dirty industry that threatens the Reef illustrates how dangerously one-eyed the federal government is when it comes to the coal industry.
“It makes no sense to build infrastructure for a mine that in all likelihood won’t happen and should never happen. Dredging endangers the Reef’s World Heritage area and carbon pollution endangers the climate - the biggest threat to the Reef.
"Environmentally, it’s a massive carbon bomb that threatens the Great Barrier Reef, and socially it’s irresponsible.
“It completely fails the triple bottom line. There is simply no good reason to develop Carmichael," she said.
ENDS