MINI CASE

Federal Court of Australia revokes green nod for Adani’s $ 16 billion

Carimichel project

Yakka skink, an endangered lizard, and ornamental snake have emerged as the latest threats to billionaire
businessman Gautam Adani's $16-billion coal project. The federal court of Australia rejected the approval to the
Adani group's Carmichael mine and rail project, touted to be the worlds biggest, after green groups claimed the
decision hadn't properly considered the impact on the two vulnerable species.  

The Mackay Conservation Group won the case against the project in Australia's Galilee Basin, with the federal
court ruling the approval by environment minister Greg Hunt invalid on environmental grounds. The case, filed in
January 2015, challenged the approval on three grounds: that the minister incorrectly assessed its climate impacts,
ignored Adani's poor environmental record, and failed to consider conservation advice from his own department
on the impact of the mine on the two vulnerable species.  

According to Australian government's environment department, yakka skink is a robust lizard, which is extremely
secretive with an average size from head to tail tip of 40cm and is found hiding under rocks, in hollow logs or
ground vegetation, or in burrow systems. The ornamental snake is confined to the Brigalow Belt, within the
drainage system of the Fitzroy River in mid-eastern Queensland, where it occurs in open forest, woodland, and
riparian habitat. Hunt conceded to the court that he failed in his duty to properly assess the project in
accordance with his obligations under federal environmental legislation. 

"It is astonishing and deeply troubling that it has taken a legal case by a small community group to bring the
approval process under proper public scrutiny, and expose Minister Hunt's dereliction of duty in fast-tracking the
mine," said Ellen Roberts, coordinator of Mackay Conservation Group. 

The Adani group acknowledged that the minister has agreed to review the July 2014 environmental approval, but
said it is confident the conditions imposed on the existing approval would prove robust and appropriate once the
technicality is addressed. "It is regrettable that a technical legal error from the federal environment
department has exposed the approval to an adverse decision. It should be noted the approval did include
appropriate conditions to manage the species protection of the yakka skink and ornamental snake," said an Adani
statement, adding that "we have been advised that, because certain documents were not presented by the
department in finalising the approval, it created a technical legal vulnerability that is better to address now". Adani
will await the minister and his department's reconsideration of its approval application under the Commonwealth
Environment Protection and Biodiversity Conservation (EPBC) Act. 

The Adani group, which has already stopped work on the coal mine, said that as a result of changes to a range of
approvals, its timelines and budget would get impacted and delay commercial production. Adani Group's financial
advisor for its ambitious $16 billion Carmichael mine project, Commonwealth Bank of Australia, has exited after a
federal court revoked environmental clearance. At a time when Adani Mining is struggling to raise funds as lenders
are wary of the project's financial viability and local protests against it, this comes as a big setback since it was
expected that Commonwealth Bank of Australia could also be lead lender.