HOGSBACK

Coal mining investment under threat

Australia is rich in resources but needs capital to develop this bounty into working projects.

Coal mining investment under threat

These two groups operating in tandem are not only seeking to compromise Australia's ability to develop mining projects that provide wealth and employment for its citizens but also the sovereignty of the nation itself.

Australia is rich in resources but needs capital to develop this bounty into working projects that provide financial returns to the economy.

There are rules and laws by both federal and state governments that oversee the development of coal mining projects to ensure they adhere to the highest global environmental standards.

That is not enough for some global agent provocateurs intent on thwarting any coal mining development. 

While keeping emissions standards in check is a worthwhile goal it does not mean every coal project being developed should be abandoned.

This overzealous attitude is leading to coal mining companies taking a more risk-averse approach to investing in Australian coal mine projects.

This has been further compounded by global financial institutions taking on the role of global climate change warriors.     

The world's largest investor, BlackRock, has decided that fossils fuels are out.

Consequently, it is calling out companies and countries it deems to be not following its lofty ideals.

Recently it unilaterally reprimanded South Korea's utility giant Kepco for making investments in coal mining projects in the region.

This overt pressure - as well as a sustained campaign by environmentalists - may go some way to explain why Kepco decided to pull up stumps at its proposed Bylong coal project in New South Wales despite shelling out millions of dollars.

The approval and development of the Carmichael coal and infrastructure project in Queensland by Indian Adani group is cited as a success story of Australia as a coal investment decision.

However, the company had to withstand years of offshore and local environmental group misinformation, law-fare, and to make matters worse embargoes from financial institutions that claimed to be listening to their environmentalist shareholders.

If every coal project proposed in Australia had to go through the same ordeal Adani had to go through the line of potential investors would shrink rapidly. 

Hogsback reckons the Australian government should ensure it considers the national interest when considering potential coal projects worthy of investment and not be swayed by outside groups that may have different agendas.           

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