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Don’t be so naif: Adani and governance of the Northern Australia Infrastructure Facility (NAIF)

Policy Online carries a link (2.3.17) to an Australia Institute discussion paper which argues that the Northern Australia Infrastructure Facility (NAIF) should reject political pressure to fast-track a $1 billion loan to Indian multinational giant, Adani.

‘Despite widespread coverage, little is known about the Northern Australia Infrastructure Facility (NAIF) or the $1 billion NAIF loan proposal for Adani’s coal rail. Lacking robust governance policies, including some required by its legislation, and poorly resourced, NAIF should reject the immense political pressure to fast-track the loan.’

Adani’s planned Carmichael coal mine to shift millions to Cayman Islands controlled company

The ABC’s Stephen Long reports (14.3.17) on analysis of Adani company filings which shows up to $3 billion from the company’s planned Carmichael coal mine will be shifted to a subsidiary in the Cayman Islands if the controversial project goes ahead.

‘An “overarching royalty deed” gives an Adani shell company rights to receive a $2-a-tonne payment, rising yearly by the inflation rate, beyond the first 400,000 tonnes mined in each production year for two decades.

‘The company with this entitlement is ultimately owned by Atulya Resources Limited, a secretive entity registered in the Cayman Islands, and controlled by the Adani family.

‘”In plain English, the upshot for the Adani family is [that] if the mine goes ahead, they receive a $2-a-tonne payment, so up to $3 billion, via a Cayman Islands company, a company owned in a tax haven,” says Adam Walters, principal researcher and Energy Resource Insights.

‘With a production capacity of 60 million tonnes or more a year, that amounts to about $120 million per annum in payments, increasing each year in line with the CPI, potentially flowing offshore.’

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