10 April, 2016

Raid on Future Fund to support Adani 's proposed coal mega-mine

Could Australia’s sovereign wealth fund be the key source of finance that enables Adani’s Carmichael mega coal mine in the Galilee Basin?

News has emerged that India’s Finance Minister, Arun Jaitley, will meet with Finance Minister Mathias Cormann and Chairman of the Future Fund, Peter Costello, on an Australian visit aimed at trying to secure subsidised government funding for Adani’s proposed coal mega-mine.

Having utterly failed to attract finance from the commercial banking sector for the initial A$10 billion required for the mine, rail and port project, Adani is now looking to its friends in the Indian and Australian government for a little sugar. The Abbott-Turnbull Government has remained staunch supporters of the Carmichael mine but, knowing how unpopular it is with the electorate, would want to find a way to finance it that flies under the radar. A direct handout in the form of a grant is too obvious, but the Future Fund presents several opportunities for a sly multi-billion dollar investment.

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