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Treasury doubts $16b Adani megamine

Documents released under freedom of information laws have revealed Queensland’s Treasury deemed the proposed Adani Carmichael megamine “unbankable”.

The documents show senior Treasury officials expressed serious concerns about approving the $16.5 billion Carmichael mine in central Queensland because of Indian mining company Adani’s high level of debt and unclear corporate structure, Fairfax Media reports.

The documents reveal Queensland Treasury was worried the project was being pushed through by the Department of State Development, Infrastructure and Planning, led by Deputy Premier Jeff Seeney, while no proper due diligence had been conducted on Adani’s financial capacity to properly establish the mine.

Former Premier Campbell Newman pledged to invest in a 300 kilometre railway line associated with the project despite the unfavourable assessment, but the state opposition played down the former announcement on Wednesday, saying there was never a deal with Adani.

“There were negotiations and due diligence was under way as part of the negotiations for investment infrastructure,” a spokeswoman said.

“But it never got to the point of a deal.”

The views raised in the treasury documents do not reflect those of the present government and treasury, a spokeswoman for Minister for State Development Anthony Lynham told media.

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