Comparative Analysis - Project management
A detailed report of the planning stage of the project including a list of completed planned activities, what was considered, monitored and controlled in this stage. learn on to become a project manager by enrolling in a Diploma of Project Management class details about class here
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Due to the challenges faced by Adani Mining due to the legal challenges, political environment, environmental breaches and the inability to secure outside funding for its Carmichael Coal Mine and Rail Project, the only planned activities which the project has been able to achieve is the securing of the mine approval (Environmental Law Australia, para. 7), and a water licence with an approval to take up to 12.5 billion litres of water each year from the Suttor River (McKenna 2018, para. 4). Its goal to commence an initial output of two million tonnes of coal per annum in 2014 (Adani Mining 2010, p. 5) was not realized due to these setbacks.
The project, which was meant to have been Australia’s largest, has been heavily scaled-back and is now only estimated to require a capital of $2 billion and not $16.5 billion, and the number of jobs it will provide for is only anticipated at 1,500 jobs and not the 10,000 jobs it previously promised (Hasham 2018, para. 1-10).
There were many factors considered in the planning process of the Carmichael Coal Mine and Rail Project. The location of the mine, including the estimated coal reserves and outputs; the contribution the mine would make to the economy; the buyers of the resource and how in-demand the mined coal would be for the Indian market; the rail and port capacity and options, including whether the rail and port are able to handle Adani Mining’s operations or whether new tracks will need to be built to cater for this added load; the extraction and processing processes of the coal; the power, fuel and water resources and supplies required to operate the mine; the required infrastructure, including the infrastructure surrounding the mine; the environmental impacts, including the effects the mine and its operations will have on climate change, air quality, greenhouse gas emissions, noise, native flora and animals, and waste; the nature conservation of the local ecological communities, regional ecosystems and protected areas; hazard, risk and health and safety issues; the relevant legislation; and the wider community and all stakeholders were all of the factors that were considered in the planning stage (Adani Mining 2010, pp. 2-43 & Adani Mining 2014, pp. E-iii-E-x).
According to the Initial Advice Statement
published by Adani Mining on the Carmichael Coal Mine and Rail Project, Adani Mining monitored the community and stakeholder consultation process and feedback in an attempt to reach the desired outcome for the project, the various permit application processes to ensure the requirements are met and responded to in a timely manner, monitor their compliance with the various laws (Adani Mining 2010, p. 35-43), and the environmental impacts to measure and be able to properly inform a project environmental management system and plan as per the Environmental Impact Statement published (Adani Mining 2014, pp. E-i-E-xxiv).
During the planning process, Adani Mining tried their best to control factors such as stakeholder consultation processes, the proposed project railway corridor alternatives and the negotiations with Hancock Prospecting and Queensland Rail (QR) for access to the Alpha Railway and Goonyella railway system (Adani Mining 2010, pp. 6-7 & 43).
The planning process saw Adani Mining work with the Queensland State and Federal governments, work with various banks around the world to endeavour to secure funding for the project, Alpha Railway and Hancock Prospecting Pty Ltd for matters relating to their use of the railway infrastructure and options, Power link and Ergon regarding their power and fuel supply, as well as Isaac Regional Council, Mackay Regional Council and Whitsunday Regional Council for the mining lease (Adani Mining 2010, pp. 2-10).
What information and data, if any, were ignored during the planning stage? (your perceptions)
From my analysis of the information available about the Carmichael Coal Mine and Rail Project, there is no veritable third-party evidence, which I have been able to source which proves that Adani Mining Pty Ltd has truly attempted to engage and consult with the Wangan and Jagalingou people adequately and in good faith during the planning stage.
The Initial Advice Statement published by Adani Mining on the Carmichael Coal Mine and Rail Project outlines that Adani Mining will consult with cultural heritage groups and the surrounding communities regarding the project to build community support and understanding as well as raise awareness about the project and establish an open line of communication with all stakeholders (Adani Mining 2010, p. 43). However, many of the Traditional Owners of the Wangan and Jagalingou country have contested that Adani Mining had not attempted to engage them in good faith during the consultation process, even though Adani Mining has managed to obtain the consent of the Wangan and Jagalingou people in an Indigenous Land Use Agreement signed in April 2016 (Arnautovic 2017, p. 3). They have proclaimed that Adani Mining has instead opted for an aggressive and exclusionary approach as many of the Wangan and Jagalingou people were excluded from representation because they oppose the development of the mine, Adani Mining constantly seeks to undermine them through unjust means, and Adani Mining has recklessly pushed forward with the knowledge that that the Australian Government has the ability to compulsorily acquire land and extinguish Indigenous rights to that land if consent fails to be obtained (Arnautovic 2017, pp. 3-6).
When endeavouring to seek buy-in for any project, all parties should be consulted and negotiate in good faith. Adani Mining has failed to show through their actions that they truly were seeking engagement in good faith. For example, Adani Mining offered only 0.2 per cent of the earnings from the planned mine to the Traditional Owners of the land, which is less than half the industry average which usually ranges from 0.35 per cent to 0.75 per cent (Robertson 2017, para. 2-5). Their stakeholder consultation process was also not comprehensive enough to ensure no one faction was excluded from representation, which resulted in the Wangan and Jagalingou people launching legal action against Adani Mining in 2015 (Jagalingou 2015, para. 1).
In my perspective, if Adani Mining had consulted and engaged with all stakeholders at the planning stage exhaustively, and resolved to work together to seek out productive solutions for both parties, they would not have been embroiled in a messy legal proceeding which also saw many financiers turn their backs on the project due to the media and publicity surrounding the legal challenge, amongst other factors (Robertson 2017, para. 1-15 & Ryan 2017, para. 1-13).
An example where a corporation has effectively consulted and engaged with the Traditional Owners of the land for a project is the Carrapateena project by OZ Minerals. OZ Minerals have developed an ongoing relationship and seek to continually engage with the Traditional Owners of the land, the Kokatha people, with a focus on creating trusting partnerships based on mutual respect, to develop a real partnership for the success of the Carrapateena mine (OZ Minerals, para. 14-15).