Adani will create more than 10,000 jobs. Here's how
ADANI will create more than 10,000 jobs - but it might not look like it.
A report given to the Federal Government by the company says that although the new megamine project for central Queensland will employ 10,000 people both directly and indirectly a large number of workers will come from existing jobs so it's likely the impact on national unemployment rates will be recorded as about 1400 jobs.
However, there will be massive flow-on effects and billions of dollars for the state over the life of the mine and Adani maintains that 4000 people will be needed for the rail line construction alone.
A report from economist Dr Jerome Fahrer, commissioned by Adani, has been used as ammunition by the mine's opponents to suggest that the company was lying over its 10,000 jobs claim and that its benefit would be muted.
Adani said Dr Fahrer was right, but so too was the company's much bigger number. It all depends on how different is the economic modelling and how it is interpreted.
But even Dr Fahrer's "conservative" assessment finds the economic impact of the project will be "very large".
"In order to provide the most conservative response, the Fahrer assessment considered only the first phase of the mine project," the report said.
That first phase was then considered to be the first 30 years, with a much lower production. Nor does it consider the Abbot Point port expansion. An analysis of the project by GHD found the benefit to Queensland from the project over its first six years would be $1.2billion a year.
"Looking further ahead, by the 2030s the impact increases to $750million a year for the regional economy and around $2.8billion a year for the state economy,'' the GHD report said.
A third report by PwC, which built on the GHD report, found the combined project would result in 8291 jobs in the development phase and 11,830 in operation.
It also said the project would generate $22billion in state tax revenue and coal royalties up to 2050.
When Dr Fahrer was called in to give his assessment he used different modelling.
But even Dr Fahrer said the net economic benefits from the mine and rail project were likely to be very large and would create "a net change in employment on average of 1464 more jobs a year".