A blow for Comrade Campbell’s communist coal

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From the SMH blog comes more good news today:

Societe Generale has suspended its involvement in financing Gina Hancock’s $10 billion coal mine, rail and port project in Queensland, which the billionaire is developing together with India’s GVK conglomerate.

The French bank’s decision is the latest twist for a project originally scheduled to produce coal from 2014, but which has suffered challenges from landowners and green groups, and been complicated by coal prices falling to more than five-year lows.

…”We have been working with Societe Generale on a specific element of the financing arrangements for our projects, but are not currently working on that specific work package and as such do not require their services at this time,” GVK Hancock said in an emailed statement.

While right-thinking capitalists are abandoning Comrade Campbell’s communist coal project in droves, the QLD Poliburo has offered to pay for hundreds of millions of dollars of infrastructure to bribe the forces of production back into the 5 year plan.

The problem is, Chairman Newman has promised this on the basis that more than one coal mine gets up and running. Presently, only Adani is moving forward. Of the other two, Clive Palmer’s project is already on ice, so further delays for GVKHancock leaves a pretty lonely scene.

I suggest an invasion of NSW instead.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.