News Wrap

IN THIS morning’s News Wrap: Adani's environmental track record to be challenged; falling iron ore costs budget $1.8 billion a year; and Citigroup says ‘Emerging 5’ can't counter China's waning commodities appetite.

Lou Caruana

Adani's environmental track record to be challenged

Environmental violations in India by mining giant Adani will be the subject of a Federal Court case challenging the company's development of Australia's largest coal project – the Carmichael coal mine in Queensland, according to the Sydney Morning Herald.

The Mackay Conservation Group launched a legal challenge to the project in January, alleging the Abbott government failed in its environmental assessment by not taking into account projected greenhouse gas emissions from the project.

Adani is fighting the claims and on Tuesday a spokesman said the mine had been assessed against strict standards and approved with more environmental conditions than any project in Australian history.

Falling iron ore costs budget $1.8 billion a year

A worse-than-expected decline in the iron ore price since December has forced the federal government to downgrade revenue predictions by another $1.8 billion a year, making the dwindling prospect of balancing the budget even more remote, according to the Australian Financial Review.

As Prime Minister Tony Abbott told his MPs on Tuesday that he still expected to return the budget to balance “in about five years”, sources said the decline in the ore price to $US56 ($A73), below the conservative annual average price estimate of $US60 in the mid-year budget update, has forced another revenue downgrade in the forthcoming May budget.

Citigroup says 'Emerging 5' can't counter China's waning commodities appetite

Global commodity markets will see slower and less synchronised demand growth from across the world as China's dominance fades, according to Citigroup, according to the Australian Financial Review.

Global demand expansion, which centered on the rise of China in the 2000s, will slow in the next decade and be driven increasingly by India, southeast Asia, the Middle East, Latin America and Africa, the New York-based bank said in a report.

While demand will increase from these regions, dubbed the ‘Emerging 5’, it won't be enough to offset the impact of slower growth from China, Citigroup said.

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