India’s Adani group is involved in mining the Carmichael coal mine in Queensland in Australia to produce and export coal. Coal is easier to transport and also helps to generate electricity cheaper, and Adani plans to export coal to various countries including India to help them meet their energy needs.
However, the Carmichael project has turned out extremely contentious as it is alleged that the Adani group has flouted several environmental rules while undertaking the project causing extensive environmental damage.
About the Project
The Australian government opened up its coal mining sector and gave approval to several projects to boost production and supply of coal. India’s Adani group has also got approval for one such project.
Adani Group is an Indian multinational company with diversified business interests. Over the years, the company has worked on several large-scale infrastructural projects in transport logistics, port development, energy development, in India as well as abroad. Adani Enterprises is the flagship company of the Adani group conglomerate, and is engaged in the business of coal and power trading.
The Adani group has set up the Carmichael coal and Railway project in Queensland, Australia to mine and export coal to other countries, including India.
As part of the project, the Adani group will undertake mining activities and will also set up a 200 km narrow-gauge rail line so that coal can be transported to the nearest port from where the coal can be exported via ships.
Adani operates in Australia under the name Bravus.
However, the Adani Carmichael Coalmine project has run into environmental issues with environmental groups claiming that there have been multiple cases of non-compliance of environmental conditions by Adani during the project.
The environmental impact of these activities include: impact to the flora and fauna due to the massive land-clearing, destruction of land and water of the local community who have been living there for ages, significant soil erosion and loss caused due to the laying of the tracks, significant increase in pollution near the Great Barrier Reef (a heritage area) due to movement of ships.
Adani has several partners on this project who are working together to implement the project. Environmental groups are pressurizing partners of Adani to back out of the project and has already made Samsung (one of Adani’s partners on the project) to withdraw from the project.
Adani group however maintains that it has been working following all the federal and state environmental norms and has been engaging with the traditional owners right from the beginning.
To deal with the controversy, Adani has been using the appropriate communication channels to communicate relevant messages, and to communicate that it cares for the environment and conducts businesses by adhering to all environmental regulations.
Sustainability and other Management Concepts
Corporate Social Responsibility: Businesses must do good for the various stakeholders involved in the business.
Triple bottom line sustainability framework suggests that businesses today should strive to improve in three key areas: making profits and caring for the people as well as the planet.
PESTLE Analysis: Businesses are expected to adhere to environmental legislations while doing business.
PR (public relations): Used to communicate messages to the larger audience, and is commonly used for brand awareness and during crisis management.
Marketing campaigns: In addition, businesses must use various communication channels to consistently communicate its environment related initiatives to project itself as an environment friendly business.
References
Mining company Bravus (formerly Adani) accused of environmental breaches: ABC NEWS
Adani’s Carmichael coal mine controversy explained. Mining Technology
Adani admits breaching environmental conditions for Carmichael coalmine: The Guardian.
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