Media reports that companies associated with the Carmichael coal mine project are accused of money laundering, corruption and financial crimes are yet more reasons why the Government should not fund Carmichael.
The Greenpeace document outlines the Northern Australian Infrastructure Facility (NAIF) Board’s network of connections to banks and mining companies, special relationships that open questions about their independence.
“Building the Carmichael coal mine is in itself a ludicrous proposition, let alone lending the company a billion dollars of taxpayer’s money that we may never get back. Our investigation shows the public how important it is to stop Carmichael right now, before we wreck a valuable part of Queensland,” said Greenpeace Campaigner Jonathan Moylan.
The points above are detailed in ‘Off Track: Why NAIF Can’t Approve the Carmichael Rail project’, available to download at the Greenpeace Australia Pacific website.
The report argues that a $1bn loan for the Carmichael Rail Project would probably not satisfy three of NAIF’s own criteria:
The project will not be of public benefit, since tax revenues and job creation will be low and the rail line cannot easily be used for other purposes;
The company asking for the loan has stated it has sufficient capital to proceed without NAIF’s financial assistance; and
In the long-term, falling coal prices and collapsing demand in India may mean the $1bn loan may never be repaid or refinanced.
The Greenpeace report also notes that several NAIF Board members who would be involved in approving such a loan are closely linked to the mining industry. This calls into question the Board’s ability to take an objective and unbiased decision on behalf of Australian taxpayers.
Mr. Moylan concluded: “Australians shouldn’t be paying to send coal to a country that doesn't even want it, at a time when we, India and the entire world have agreed to reduce fossil fuels and carbon emissions. Loaning $1bn to Carmichael doesn’t make any sense at all.”