Business Ethics and Corporate Social Responsibility

Individual Assignment
ADANI GROUP
Carmichael Coal Mine
The Carmichael coal mine is a thermal coal mine in the north of the Galilee Basin in Central
Queensland, Australia, approved by the Queensland and federal Australian governments. Mining
was planned to be conducted by both open-cut and underground methods. The mine is proposed
by Adani Mining, a wholly owned subsidiary of India's Adani Group. The development was
initially intended to represent an AUD$16.5 billion investment, however, after being refused
financing by over 30 financial institutions worldwide, Adani announced in 2018 that the mining
operation would be downsized and self-funded to AUD$2bn. As of November 2019, Adani is set
to receive a seven-year royalty deferral worth $900m, and over $4.4 billion in total tax
exemptions, deferrals and capital subsidies from Queensland taxpayers for the life of the
Carmichael mine.

At peak capacity the mine would produce (as of 2017) 60 million tonnes of coal a year, much of it
"low quality, high ash" In court, Adani said in 2015 it expects the mine to produce 2.3 billion
tonnes over 60 years. It would be the largest coal mine in Australia and one of the largest in the
world. The mine would be the first of some large mines proposed for the Galilee Basin.

Key Issues
 The impacts of the mine on groundwater and groundwater-dependent ecosystems,
particularly the Doongmabulla Springs Complex and Mellaluka Springs Complex
 The impacts of the mine on biodiversity, particularly an endangered bird species, the
Black-throated Finch
 The contribution that the burning of the coal from the mine will make to climate change,
thereby contributing to environmental harm to the Great Barrier Reef World Heritage
Area due to climate change
 Add 4.6 billion tonnes of carbon pollution to our atmosphere.
 Risk damaging aquifers of the Great Artesian Basin
Key Stakeholders and their interest

Stakeholders Power Interest

Residents  Low Health issues & impact on livelihood
Employees of Adani Group High Profitability, Income Generation, Growth &
Expansion 
Society Low Health issues, Impact on environment, Illegal
seizure of their lands
Regulatory Bodies High Environmental damage, Practices for tax
evasion, Violation of customs duty, Violation of
Laws of the Land including that of Import &
Export
Indian Government High Impact on FDI, Infrastructural & Economic
opportunities, Employment & Revenue
Generation, Taxes & Duties
Australian Government High Export Activities, FDI
Media (of both countries) High Reporting on degrading quality of life of natives,
Zero sustainability operations, Harassment,
Bribing, Environmental Impact 
Creditors & Lenders
Environmentalists
The Organization (Adani
Group)
Suppliers & Contractors
Investors
Non-Human Stakeholders
Police & Crime Branch
Customers
Siemens
Doctors
High Risk of return, Risk on non-payment
Moderate Impact of unfair practices on environment;
Queensland basin, groundwater
High Reputation, Relationship with Foreign Investors,
Profitability, Functioning of business operations
Moderate Flow of Supplies, Business Opportunities
High Capital for constant growth
Low Death due to water & land degradation
High Stop money laundering, legal actions against
fraudulent practices, verification of financial
statements
Low Trust in the organization
Low Impact on their transportation contract with
Adani Group for supply of machinery &
equipment
Low Long term health issues of locals

Primary social stakeholders Secondary Social Stakeholders

Local People Health Groups

Customer Environmentalist

Fisherman/ Graziers Media and Communication

Employees Regulatory Bodies

Farmers
ADANI
Primary Non Social GROUP Secondary Non Social
Environment (Flora and Fauna) Anti-Corruption Body

Animals Crime Branch

HINDU

NDTV CREDITORS AND

LENDERS

MEDIA

COMPETITORS

ADANI
GROUP