GVK Power and Infrastructure Ltd (GVK PIL) on Wednesday (June 19) criticized a report that questioned the financial viability of its Australian coal project. "There is a current motivated media campaign underway, primarily sponsored by Greenpeace, which is envisaged to continue internationally for a number of weeks, to discredit the use of coal and to curtail growth and development in mining, transport and other sectors where infrastructure/construction is required," it said in a release. "Greenpeace's communication to the media quotes a report by US-based Institute for Energy Economics and Financial Analysis (IEEFA), which incidentally, is commissioned, sponsored and funded by Greenpeace itself. There are even reports that IEEFA is owned by Greenpeace. The report questions the financial viability of GVK Australian coal project."
When contacted, GVK PIL Chief Financial Officer Issac A George added: "GVK would not venture into a project and invest a billion dollars if it was not viable in the first place."
Terming the report "motivated.....deliberately misconstruing facts and misleading with inaccurate data," the GVK press release says, "the timing of such motivated communication it to create hurdles when GVK is seeking and (and is confident of getting) clearance for dredging in about a month's time."
"We are aware that activist groups have and will continue to misrepresent the way in which the Great Barrier Reef is impacted by coal companies through port development and shipping (particularly as GVK is in the midst of finalising its last environmental approvals)," it adds. "We continue to also have positive support from Queensland and federal government and the communities within which we would be operating. Barcaldine Region and Whitsunday Region are keen to see our projects proceed. Underlying polling of the Queensland community also identifies that nearly 80 per cent support mining and the benefits it brings."
"Our projects are financially robust with some of the lowest operating costs in the global coal industry and represents a very large high quality and new source of low ash, low sulphur, low gas thermal coal, which is now in far higher demand," it adds. "Adding to this demand are the recent steps China is taking to eliminate import of low quality coals. We remain extremely confident of the successful, responsible delivery of our projects with our proven experienced Australian management team."