Adani to build $300 million power line to Galilee Basin
Indian energy giant Adani Group is planning to build a $300 million electricity transmission line to its proposed mine in the Galilee Basin in central Queensland, according to the Australian Financial Review.
Despite growing speculation that some Galilee mines, including those of Clive Palmer’s Waratah Coal, may not proceed because of the falling coal price, Adani flagged plans to build a 250km high-voltage line from Powerlink’s Strathmore substation near Collinsville in the Bowen Basin to its proposed Carmichael mine.
It would be the first high-voltage transmission line built by the private sector in Queensland and signals the ongoing shake-up of the energy sector after changes announced by the Newman government this week.
Queensland Premier Campbell Newman will tell an Infrastructure Partnerships Australia lunch in Brisbane on Wednesday Adani’s decision was a positive commitment by the Indian company to get the project running.
Reserve Bank signals mining concerns
The Reserve Bank of Australia has cast fresh doubts about the strength of the resources boom, warning that surging global supplies of cheap energy threaten the viability of future gas projects, according to the Australian Financial Review.
Mining investment – the biggest driver of Australia’s economic prosperity since the global financial crisis – faces “considerable uncertainty” in as little as 12 months, the central bank said on Tuesday.
Leading economist Saul Eslake puts the likelihood of a recession at 25% and forecasts Australia may need to join the rest of the developed world in slashing rates close to zero and adopting a form of money printing known as quantitative easing.
Newcrest chairman should go, says ASA
The Australian Shareholders Association has called for the chairman of Newcrest Mining, Don Mercer, to stand down over the gold miner's poor performance since the $10 billion Lihir Gold takeover and the widely panned handling of the company's latest market update, according to The Australian.
The group representing the nation's mum-and-dad shareholders will confirm the call next week in Equity – its monthly magazine, where it will say Mercer, a former ANZ Bank chief and Orica chairman, should go before Newcrest's October annual meeting.
