The Adani Group is an Indian multinational conglomerate with interests in ports, coal trading, electricity generation, electricity distribution, agribusiness, and a range of other areas. The Group was founded by CEO and Chair, Guatam Adani. They are the parent company of Adani Enterprises, owner of Adani Mining, the company that is developing the Carmichael mine.
Adani recently proposed a demerger of Adani Enterprises, Adani Ports and SEZ (Adani Ports), and Adani Power Ltd (Adani Power), which is aimed at simplifying the Adani Group structure, and improving the transparency and free float of three of the listed entities.
Environmental record and historical business practices
Adani Enterprises Ltd and its subsidiaries have a history of breaching environmental regulations and causing environmental harm in India.
A Fairfax news investigation last year raised accusations that Adani has systematically underpaid its Indian workforce, and has exposed them to cholera.
Another Fairfax report raised a range of concerns around governance and transparency issues with Adani’s Australian operations.
Adani’s Australian projects
Adani plan to build a 60 million tonne per annum coal mine in the Galilee Basin called Carmichael. They also plan to build a railway linking the mine to the sea (the ‘North Galilee Basin Rail’), and a 70 million tonne per annum capacity coal port at Abbot Point (‘T0’).
Analysts have raised repeated concerns around the viability of Adani’s projects, citing low thermal coal prices and a relatively high cost of production.
Environmental approvals for their projects have also been subject to a range of court actions, with a case brought against the approval of Carmichael by both the Queensland and Australian Commonwealth governments. Legal proceedings have also been brought against the dredging and dumping required for the construction of Abbot Point T0. Thus far the location for dumping of dredge spoil has been changed twice, largely because of a strong public outcry.