Indian energy giant Adani, which plans to make a final decision on its $16.5 billion Carmichael Mine this year, believes coal will remain the cheapest source of energy for decades.
As Adani signed agreements with indigenous groups which could deliver benefits worth $250 million over the next 30 years, Adani Australia chief operating officer Samir Vora said talk about the end of fossil fuels was exaggerated.
“Coal is definitely the main source of energy – you can’t deny it. It’s growing every year no matter what anyone says,” he said in an interview.
“India is investing in new generation technology to make coal more efficient to bring down the carbon footprint. There is a balance for everything [like renewables] but coal will undoubtedly remain the main source of fuel for decades.”
Amid speculation Adani would not be able to finance the mega-mine in Central Queensland, Mr Vora said he was confident it would have the funds once final mining and dredging approval was granted by the state and federal governments.
“Coal is a commodity which is always going to be cyclical so we should make sure we stay on the right side of the cost structure which is under our control. It is still challenging but we are still able to compete,” he said.
Adani on Tuesday signed indigenous participation plans with the Juru, Birriah and Jangga Aboriginal people as well as a memorandum of understanding with the Wangan and Jagalingou group.
The agreement will offer business development, jobs and training opportunities for indigenous people over the three-decade life of the mine if it is finally given the green light by Adani later this year.
This ranges from environmental management at the Port of Abbot Point in far North Queensland and at the mine in Central Queensland, a potential bus services to the mine and training programs.
For the rest of this article, click here: http://www.afr.com/news/politics/coal-is-not-dead-says-adani-20150616-ghoxzf