Adani Cancels $1.5 Billion Contract on Australian Mine Project

first_img FacebookTwitterLinkedInEmailPrint分享Financial Times:Adani Group has cancelled a A$2bn (US$1.5bn) contract with a mining services company for work on its proposed Carmichael coal mine in Australia due to its failure to raise funds for the controversial project.The cancellation of the contract with Downer, an Australian company, on Monday is the latest challenge to hit the Indian conglomerate’s project, which has become a focal point for protesters over the role played by coal in causing climate change.It also follows a decision last week by the Queensland state government to veto a A$900m low-cost loan to Adani and the failure of Chinese investors to back the Carmichael mine.Adani said it remained committed to the A$16.5bn Carmichael project but planned to develop and run the mine on an owner-operator basis to achieve the “lowest quartile cost of production”.The Carmichael project has become a symbol of the global battle between environmentalists and the fossil fuel industry, attracting a series of legal challenges that have caused lengthy delays. The proposed mine sits in Queensland’s Galilee Basin, one of the world’s largest untapped coal resources.Adani’s board gave final approval for the mine in June. But raising money for the venture has so far proved an insurmountable challenge due to the decline in global coal markets and a vocal protest movement led by international environmental groups such as 350.org and Greenpeace.The project has become a litmus test on the future of coal, amid growing investor fears about whether increasingly onerous regulations on the emissions will create stranded assets.On Monday the world’s biggest coal terminal, Port of Newcastle, warned it needed to diversify and prepare for a future without coal.“It looks like another wheel has fallen off the Adani project,” said Tim Buckley, a director at the Institute for Energy Economics and Financial Analysis, an opponent of the Adani project. “With all of the Chinese banks ruling out involvement in the Carmichael proposal, deal funding has fallen over.”More: Adani cancels A$2bn Australia coal mine contract amid cash crunch Adani Cancels $1.5 Billion Contract on Australian Mine Projectlast_img read more

Survey tracks corporate spending for outside counsel

first_img February 15, 2002 Regular News Survey tracks corporate spending for outside counsel How will U.S. corporations adjust their spending on outside legal counsel in 2002? Will the recession rein in spending, or will economic factors be less of a concern, as businesses call on outside firms more to help navigate a changing regulatory landscape and rising litigation?It turns out that companies may be headed in both directions, according to a new survey on law department spending by National Economic Research Associates.In its first annual “Legal Leading Indicators” survey, NERA found that more than a third of the country’s largest corporations (38 percent) say they plan on decreasing spending for outside lawyers, although the decrease is not expected to be dramatic. The percentage of spending on outside counsel, as a share of overall spending, is expected to slip from 53.5 percent in 2001 to 51.6 percent in 2002. At the same time, 23 percent of companies surveyed projected an increase in outside law firm spending.Even the projected decrease is not across the board. For a few key specialties, notably labor and employment and regulation, the percentage of companies that anticipate increasing outside legal budgets was greater than those anticipating a decrease. The same pattern emerged for international work — more companies than not expect to increase spending for legal work outside the U.S.Staffing changes and changes in regulation are the most important factors influencing outside counsel spending next year, ahead of changes in the economy, and far more important than “threats of terrorism,” which was cited as an important factor by only two percent of companies surveyed.For some, staffing changes simply mean more in-house hiring, according to the NERA.“We will be bringing in higher-level, in-house talent,” said one respondent to the NERA study. “More in-house counsel,” echoed another, with “more focus and closer review of outside billings.”The survey suggests that this past year found many corporate law departments at a crossroads. When asked to compare current legal budgets with 2000, 48 percent of companies reported there had been an increase, while only 18 percent reported a decrease.Looking ahead to 2002, 39 percent anticipated that outside legal spending would decrease “somewhat” or “a lot,” while 38 percent said that their outside legal spending would remain flat in the coming year.The NERA survey was based on interviews with 302 firms with annual revenues of $500 million or more. Sixty-two percent reported sales of least $1 billion, and 62 percent of respondents identified themselves as chief counsel.NERA, an economic research firm and an affiliate of Marsh & McLennan, provides economic consulting services to both in-house legal departments, as well as many private law firms.center_img Survey tracks corporate spending for outside counsellast_img read more