From a pure governance perspective, any reputable Australian business person, and risk aware financial institutions, would steer clear of an investment in the Adani Carmichael Coal Mine, and it has very little do to with climate change, although from that perspective, this is the craziest undertaking we currently have in this country.
I am looking at this purely from a governance and related risk perspective. The key issues are quite simple, namely:
- From a deal-making perspective, Adani has a questionable history in its home country
- Those that are at the helm of Adani, have themselves, a questionable reputation in governance execution in their home country
- The controlling entity is likely to be domiciled in an offshore tax haven that will be inaccessible to Australian regulatory authorities should there be a need to call upon that entity to rectify any breaches associated with the one development or functions, including those that may breach environmental conditions
- From a financial perspective, the mine does not appear to stack up. some of the largest and reputable banks in the world have pulled out of the deal, questioning the very fundamentals of financial governance
- Adani will not be the economic saviour of Australia. Sustainable jobs will not be created in Qld or anywhere else resulting from this development
- The Carmichael Coal Mine will jeopardise existing wealth-creating activities associated with the Great Barrier Reef, whose tourism opportunities have as yet, not been fully exploited
- Australian taxpayers will see little return for their $1 billion investment, socially or economically.