How many times and in how many ways does the NSW Government have to be told before they admit they are wrong?

The majority of local residents and farmers don’t want this coal mine, a number of experts have been warning against it for years - yet still the NSW Government doesn’t appear willing to genuinely protect the water resources, agricultural assets and biodiversity values of the Liverpool Plains food bowl.

Here is the latest plea to go public.

The Sydney Morning Herald, 28 August 2017:

Claims that Shenhua's restricted coal mining will avoid affecting the aquifers of the rich farmlands of the Liverpool Plains are "false and ignorant", former state and private agronomists have said in a letter to Premier Gladys Berejiklian. 

The government last month paid the Chinese coal miner $262 million for just over half the exploration licence area of the proposed mine at Watermark in northern NSW. Energy Minister Don Harwin said the buyback would ensure there was no mining on the fertile black soils of the plains.

But the agronomists, five of whom worked for the Department of Primary Industries or precursor departments, said limiting the proposed open cut mine to ridges would still likely affect surface and groundwater flows in the plains and downstream regions.

"The claim that mining the ridges above Breeza will not have an impact on farming operations is false and ignorant," the letter's authors said.

"Hydrogeological investigations have shown that there is a high degree of connectivity between the alluvial aquifers throughout the Namoi Valley."

Brian Tomalin, a retired cattle farmer and a former Namoi Catchment Management board member, told Fairfax Media endangered ecological communities such as whitebox woodlands were also at risk from impacts of an open pit reaching as deep as 300 metres.

I wonder if Liberal and Nationals MPs and senators remember that Adani's corporate structure in Australia is allegedly also geared towards siphoning money into tax havens?

The Guardian, 16 August 2017:

A global mining giant seeking public funds to develop one of the world’s largest coal mines in Australia has been accused of fraudulently siphoning hundreds of millions of dollars of borrowed money into overseas tax havens.

Indian conglomerate the Adani Group is expecting a legal decision in the “near future” in connection with allegations it inflated invoices for an electricity project in India to shift huge sums of money into offshore bank accounts.

Details of the alleged 15bn rupee (US$235m) fraud are contained in an Indian customs intelligence notice obtained by the Guardian, excerpts of which are published for the first time here.

The Directorate of Revenue Intelligence (DRI) file, compiled in 2014, maps out a complex money trail from India through South Korea and Dubai, and eventually to an offshore company in Mauritius allegedly controlled by Vinod Shantilal Adani, the older brother of the billionaire Adani Group chief executive, Gautam Adani.

Vinod Adani is the director of four companies proposing to build a railway line and expand a coal port attached to Queensland’s vast Carmichael mine project.

The proposed mine, which would be Australia’s largest, has been the source of years of intense controversy, legal challenges and protests over its possible environmental impact.

Expanding the coal port to accommodate the mine will require dredging an estimated 1.1m cubic metres of spoil near the Great Barrier Reef marine park. Coal from the mine will also produce annual emissions equivalent to those of Malaysia or Austria according to one study.

One of the few remaining hurdles for the Adani Group is to raise finance to build the mine as well as a railway line to transport coal from the site to a port at Abbot Point on the Queensland coast.

To finance the railway Adani hopes to persuade the Northern Australia Infrastructure Facility (Naif), an Australian government-backed investment fund, to loan the Adani Group or a related entity about US$700m (A$900m) in public money.

Adani family’s Australian corporate structure…..

ABC News, 14 March 2017:

Up to $3 billion from Adani's planned Carmichael coal mine will be shifted to a subsidiary owned in the Cayman Islands if the controversial project goes ahead, an analysis of company filings shows.

An "overarching royalty deed" gives a shell company rights to receive a $2-a-tonne payment, rising yearly by the inflation rate, beyond the first 400,000 tonnes mined in each production year for two decades.

The company with this entitlement is ultimately owned by Atulya Resources Limited, a secretive entity registered in the Cayman Islands, and controlled by the Adani family.

"In plain English, the upshot for the Adani family is [that] if the mine goes ahead, they receive a $2-a-tonne payment, so up to $3 billion, via a Cayman Islands company, a company owned in a tax haven," says Adam Walters, principal researcher and Energy Resource Insights.

With a production capacity of 60 million tonnes or more a year, that amounts to about $120 million per annum in payments, increasing each year in line with the CPI, potentially flowing offshore.

"I would describe it as a structure that means that the Adani family enriches themselves if the mine goes ahead but that other shareholders are impoverished," associate professor Thomas Clarke, director of the Centre for Corporate Governance at UTS told the ABC.

"The worry is that this may be just the beginning.

"That the Adani family have the ability to shift cash and assets around at will and in the future they may well do so at the cost of shareholders and the Queensland economy."

He said the billions flowing to the Adani private company would come at the expense of minority shareholders in the company listed on the Bombay stock exchange which ultimately owns the Carmichael mine.

How Adani acquired the right to this multi-billion-dollar revenue stream is a tale in itself.

In 2010, Adani Mining Pty Ltd bought the coal tenement that is set to become the Carmichael mine from the now defunct Linc Energy.

Part of the sale involved Adani Mining giving Linc Energy an "overriding royalty deed" which entitled it to receive $2-a-tonne for all coal mined beyond the first 400,000 tonnes in any production year.

Linc Energy informed investors at the time could be worth "over $120 million per annum" and up to $3 billion over the course of the royalty right.

But in August 2014, in dire financial straits, Linc Energy agreed to sell the royalty deed back to Adani at a fire sale price: just $150 million.

The obvious course would have been to extinguish the royalty deed, because it represented a multi-billion-dollar liability for the mine which is ultimately owned by Adani Enterprises Ltd, the Bombay-stock exchange listed company.

Instead, the royalty deed "was assigned by Linc Energy Limited to Carmichael Rail Network Pty Ltd as trustee for Carmichael Rail Network Trust," notes in financial reports of Adani Mining Pty Ltd say.

Carmichael Rail Network is one of a group of companies behind the proposed North Galilee Basin rail line, which Adani is currently seeking a subsidised loan of up to $1 billion from the Federal Government's Northern Australia Infrastructure Facility to build.

"What this means is that one of the companies currently seeking up to $1 billion in public subsidy is going to profit to the tune of up to $3 billion if the mine goes ahead," Mr Walters said.

Adani Mining Pty Ltd, the proponent of the Carmichael mine and the holder of its environmental approvals, appears to have lent Carmichael Rail the funds to buy the royalty deed.

BACKGROUND

The Guardian, 21 August 2015:

We know that Abbott loves coal and thinks that it is “good for humanity”. Is that why he is prepared to back a financially risky project?

Is it the “10,000” jobs that government ministers say will come from the project (remembering that Adani’s own consultant has said that those numbers were vastly overblown and that Carmichael would result in less less than 1500 jobs).

Could it be the prospect of cash from coal royalties? Maybe.

Does the substantial media coverage from the mine just give the Abbott Government another opportunity to tell the public that all environmentalists are economic saboteurs who want to take away people’s jobs and come in the dead of night to steal your babies? Possibly.

But could there be another causal factor that has contributed to the way Australian politicians have forcefully backed Adani for so many years?

Could that other factor be the close relationships that the company has managed to forge at the highest levels with Australia’s political leaders?

Whenever an Australian leader sets foot in India, it seems that a meeting with Gautam Adani is never more than a figurative (and sometimes literal) flight in a private jet away.

There’s evidence of this going back at least as far as October 2010 and its there in the records of trade missions tabled before parliaments.

Let’s peruse together.

In October 2010, Queensland’s then Premier Anna Bligh travelled to India on a trade mission to promote the state’s bid to host the Commonwealth Games and “strengthen Queensland’s position as an ally and destination for future trade and investment in the eyes of the Indian market and nation leaders”.

A report tabled to the Queensland Parliament shows that Bligh’s first official meeting with Indian figures was with Adani, where the company’s owner Gautam Adani and his international development executive Harsh Mishra got to quiz the Premier about policies relating to rail lines, underground coal gasification and support for mining in the Galilee Basin.

Bligh also “agreed to attend the opening” of Adani’s offices in Brisbane later that month and extended an invitation for Adani to meet with its co-ordinator general when they were next in Brisbane.

After Campbell Newman won power for the Liberal National Party in Queensland, he led a trade mission to India too.

While there, Newman joined former Labor Resources Minister Martin Ferguson and a 76-strong business delegation for a tour of an Adani port and a power plant, reportedly getting there on a private jet.

The report on the trade mission, tabled to Parliament, shows that Mr Adani then hosted a lavish reception at his home for the entire delegation.

Judging by one freelance photographer’s images, the event was quite an affair with much handshaking all-round.

The event was part of “OzFest” – Australia’s “largest cultural festival” for which Adani was a “platinum sponsor”

In 2013, the Queensland Government was again in India for a trade mission led by then Deputy Premier Jeff Seeney and, again, the Adani company was on hand.

Seeney’s delegation travelled with Adani executive Harsh Mishra to visit an Adani-owned port and power station before Seeney had a private lunch with the company.

Later that same day, Seeney met with Gujarat Chief Minister Narendra Modi (now the Indian Prime Minister) and… Gautum Adani.

Mr Adani then hosted a private dinner with Seeney “which included Adani Group senior executives and members of Mr Adani’s family”.

But it’s not only Queensland politicians who have sought out Adani company bosses while on missions to India.

Former New South Wales Premier Barry O’Farrell met with Gautam Adani during a trade visit to India in December 2013.

Current NSW Premier Mike Baird also went on a trade mission to India earlier this year. You can probably guess by now the name of one Indian billionaire he met with.

Gautam Adani is also a co-chair of the Australia-India CEO Forum – an initiative of the Australian High Commission.

Trade minister Andrew Robb attended the last meeting in New Delhi. I don’t know if they had dinner (but if I was a betting man….)

Why are we still refusing to fully honour the spiritual and cultural relationship that traditional owners have to the land in Australia?

It doesn’t matter to the Turnbull Government that science declares that Aboriginal Australia has existed since time immemorial or that indigenous culture has existed on this continent longer than any other culture which is now part of multicultural Australia -  it stubbornly refuses to genuinely honour the spiritual and cultural relationship that traditional owners have with the land.

Native Title law now tainted by Adani

June 15, 2017

MEDIA RELEASE
14 June 2017

Traditional Owners slam passage of Native Title amendments

Traditional Owners fighting Adani’s proposed coal mine have expressed profound disappointment at the passage of Attorney General Brandis’ amendments to the Native Title Act, stressing that while Mabo’s legacy has been diminished they will continue to fight for their rights.

Senior spokesperson for the W&J Traditional Owners Council, Adrian Burragubba, says, “Adani’s problems with the Wangan and Jagalingou people are not solved this week. The trial to decide the fate of Adani’s supposed deal with the Wangan and Jagalingou Traditional Owners is scheduled for the Federal Court in March 2018.

“Our people are the last line of legal defence against this mine and its corrosive impact on our rights, and the destruction of country that would occur.

“Senator Brandis has been disingenuous in prosecuting his argument for these changes to native title laws, while the hands of native title bureaucrats and the mining lobby are all over the outcome.

“This swift overturning of a Federal Court decision, without adequate consultation with Indigenous people, was a significant move, not a mere technical consideration as the Turnbull Government has tried to make out.

“It is appalling and false for George Brandis to pretend that by holding a ‘workshop’ with the CEOs of the native title service bodies, he has the unanimous agreement of Traditional Owners across Australia. No amount of claimed ‘beseeching’ by the head of the Native Title Council, Glen Kelly, can disguise this.

“The public were not properly informed about the bill, and nor were Indigenous people around the country, who were not consulted and did not consent to these changes.

“We draw the line today. We declare our right to our land. There is no surrender. There is no land use agreement. We are the people from that land. We’re the rightful Traditional Owners of Wangan and Jagalingou country, and we are in court to prove that others are usurping our rights”, he said.

Spokesperson for the W&J Traditional Owners Council, Ms Murrawah Johnson, says, “Whatever else this change does, we know that the Turnbull Government went into overdrive for Adani’s interests.

“Brandis’ intervention in our court case challenging the sham ILUA was about Adani. Most of what Senator Matt Canavan had to say in argueing his ill-informed case for native title changes was about Adani. The Chairman of Senate Committee inquiring into the bill, Senator Ian McFarlane, referring to the native title amendments as “the Adani bill” was about Adani. And the PM telling Chairman Gautam Adani that he’d fix native title was about Adani”.

“We are continuing to fight Adani in court and our grounds are strong. If anyone tells you this is settled because the bill was passed, they are lying”, she said.

Adrian Burragubba says, “The Labor Opposition seems to understand this, even though they supported passage of the bill. Senator Pat Dodson went so far as to say this bill does not provide some kind of green light for the Adani mine, as some suggest.

“Pat Dodson acknowledged that W&J have several legal actions afoot against Adani and we are glad that in the midst of this dismal response to the rights of Indigenous people some MPs, including the Greens who voted against the bill, recognise the serious claim we have to justice.

Mr Dodson said in the Senate that: “most of this litigation will be entirely unaffected by the passage of this bill. In particular, there are very serious allegations of fraud that have been made against Adani regarding the processes under which agreements with the Wangan and Jagalingou people were purportedly reached. And those proceedings, which may impact on the validity of any ILUA, will only commence hearings in March next year. Other legal action is also underway, including a case challenging the validity of the licences issued by the Queensland government.”

This week researchers from the University of Queensland released a report titled ‘Unfinished Business: Adani, the state, and the Indigenous rights struggle of the Wangan and Jagalingou Traditional Owners Council‘.

For more information and to arrange interviews:  Anthony Esposito, W&J Council advisor – 0418 152 743.

Yindjibarndi People granted exclusive native title over their traditional lands

A short entry by the Federal Court of Australia heralds exclusive native title for the Yindjibarndi People over their traditional lands in the Pilbara region of Western Australia.

Original Word Document (1.6 MB)

2017FCA0803-summary

Link to case history

FEDERAL COURT OF AUSTRALIA

Warrie (formerly TJ) (on behalf of the Yindjibarndi People) v State of Western Australia [2017] FCA 803

File number:	WAD 6005 of 2003
Judge:	RARES J
Date of judgment:	20 July 2017

ORDERS

THE COURT ORDERS THAT:

1.    The parties consult and seek to agree and prepare a draft determination of native title for the Court to make under s 225 of the Native Title Act 1993 (Cth) to give effect to the reasons for judgment delivered today.

2.    The proceeding be listed for case management on 17 August 2017 at 11.30am.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

In the judgment Justice Rares stated in part:

54    I am satisfied, having considered all of the evidence, that this explanation of spiritual connection reflects both important traditional laws, that the Yindjibarndi acknowledged, and traditional customs, that they observed, at the time of sovereignty and continue to acknowledge and observe today. The explanation neatly captures the essence of the relationship of the Yindjibarndi to their country and their spiritual obligation, embedded in their traditional laws and customs, to protect that country, including from the presence and activities on it of strangers (or manjangu) unless the stranger(s) first obtain(s) permission from Yindjibarndi people.

55    In addition, I am satisfied that, if a stranger were free to enter Yindjibarndi country without permission, under those Yindjibarndi normative laws and customs that have continuously applied over the same time period, he or she could “hurt” the country by violating the Birdarra law, even if unintentionally; for example, by entering a sacred or restricted place, or taking something, such as a resource or animal, from the country. And, those laws and customs thus require the Yindjibarndi to protect their country from a manjangu gaining access to it or its living or inanimate resources without permission of a Yindjibarndi elder.

56    Moreover, I am satisfied by all of the evidence that the Yindjibarndi have continuously (since before sovereignty) acknowledged traditional laws and observed traditional customs relating to the presence, role and power of the spirits of the Marrga and “old people” in and over Yindjibarndi country.

149    I am satisfied that, on the evidence before me, the Yindjibarndi continue to acknowledge their traditional laws and observe their traditional customs that have existed since before sovereignty that a manjangu must seek and obtain permission from an elder before entering on Yindjibarndi country or carrying out activity there (except if the person is simply driving through).

150    Moreover, that conclusion is supported by the evidence of Dr Palmer, which I accept. He concluded that the Yindjibarndi had the right to exclude others who are not Yindjibarndi “and are consequently identified as manjangu”, but he also found that they had abandoned the pre-sovereignty right to put a trespasser to death.

151    Accordingly, I find that the Yindjibarndi have the exclusive right to control access to Yindjibarndi country and, in particular, to the claimed area.

PHOTO: The Yindjibarndi land extends across an inland section of the western Pilbara, including parts of the Millstream National Park. (ABC North West WA: Joseph Dunstan)
The response of that right-wing warrior Andrew Forest of Fortescue Metals was not long in coming.

The Australian, 21 July 2017:

A landmark court decision could set a new template for the way the mining industry approaches ­native title negotiation, after ­Andrew Forrest’s Fortescue Metals Group lost a long running claim over its Pilbara mining hub.

Fortescue could be on the hook for hundreds of millions of dollars in past and future royalties, following the biggest native title ruling to hit an Australian miner for years.

Even so, Fortescue yesterday moved to hose down concerns about the impact of a native title ruling over its Solomon mining hub, noting that it did not expect the ruling to have any “material” financial impact on or inhibit current or ­future operations.

The ruling gives the Yindjibarndi exclusive native title rights over Fortescue’s Solomon mining hub in Western Australia that ­accounts for at least 70 million tonnes of the company’s annual iron ore output.

While the ruling does not prohibit Fortescue from continuing to operate the Solomon mines, it does potentially leave Fortescue exposed to a compensation claim over the hundreds of millions of tonnes of iron ore mined at the project to date as well as possible royalties over future production.

The Guardian, 21 July 2017:

Fortescue Metals Group is likely to appeal against a determination of exclusive native title for Yindjibarndi people over land in the Pilbara which encompasses its Solomon Hub mine.

On Thursday the federal court ruled in favour of the Yindjibarndi traditional owners, awarding exclusive rights and interests over about 2,700 sq km of unclaimed crown land, which encompasses FMG’s $110bn mine.

The company responded on Thursday that it had “no commercial concerns and do not anticipate any material financial impact following the court’s determination,” but on Friday its chief executive suggested it would appeal.

Nev Power told ABC local radio he thought the court’s decision was wrong.

“I think we are likely to appeal,” he said. “It’s a very unusual decision in that the judge has found exclusive native title possession on this land, which we think is unlikely to be the case. So we will be looking at it definitely and considering an appeal.”

Following the decision on Thursday FMG shares dropped 19c to $5.19, and opened at $5.05 on Friday.

A plea on behalf of NSW Liverpool Plains communities

LOCK THE GATE:

It's been a difficult week on the Liverpool Plains. Yesterday the New South Wales Government paid coal company Shenhua $262 million dollars in a deal that removes part of their larger exploration licence but still lets the company go ahead with it's full coal mining project on the irreplaceable Liverpool Plains. There is a lot of public relations spin from the NSW Government, but the cold hard truth is that they haven't stopped the Shenhua Watermark coal mine and the company now says it plans to proceed to start the project. The consequences for local farmers adjoining the mine, and the productivity of this vital national foodbowl, will be severe. Local farmers have been fighting this proposal for ten years, and need your support now to phone the NSW Premier to tell her that she hasn't delivered what is needed and she must stop the entire Shenhua coal mine and cancel all licences. Can you phone the Premier now?  The Government is trying to throw the coal dust over our eyes by telling us this is a great win for the Liverpool Plains. But in fact, all they have done is pay an exorbitant price for some areas that Shenhua never had any intention of mining, whilst allowing the full 4,000 hectare mine with 3 massive open-cut coal pits to go ahead full bore on the Plains. The NSW Government has the legal power to cancel the entire Shenhua exploration licence and put an end to this dangerous mine proposal once and for all. Please phone the Premier now and let her know that is what she needs to do.  We've got some simple talking points here to help you with your call. This is an incredibly crucial moment. We need a crescendo of voices demanding full protection of this magnificent country and an end to the Shenhua mine project. Thanks for your help, George Woods Lock the Gate Alliance http://www.lockthegate.org.au/ Lock the Gate Alliance · PO Box 6285, Sth Lismore, NSW 2480, Australia . You can also keep up with Lock the Gate Alliance on Twitter or Facebook.

PEOPLE POWER: gas pipeline resistance in the corn

HuffPost, 9 July 2017:

If the management team at Williams Partners was having flashbacks on Sunday, it was by design. The Oklahoma-based pipeline company has met stiff resistance to its proposed Atlantic Sunrise pipeline since it was first announced in 2014. On Sunday, hundreds of opponents of the project congregated in an outdoor chapel in Columbia, Pennsylvania on property owned by the Adorers of the Blood of Christ, an order of Catholic nuns. Among those in attendance were representatives from another order, the Sisters of Loretto, from Kentucky who helped defeat Williams’ Bluegrass pipeline in 2014….

Lancaster Against Pipelines, a grassroots group dedicated to stopping the nearly 200-mile natural gas transmission pipeline, constructed the chapel on a grove just feet from where the pipeline would cut through a corn field. The field and nearly cloudless blue sky above provided the backdrop for the simple wooden altar facing a few rows of wooden benches.

Williams Partners tried to stop the dedication. Last Thursday, the company submitted a 45-page emergency motion to a federal district judge in an attempt to take immediate possession of the property and get permission to deploy U.S. Marshals on the nuns and “any third parties authorized by the sisters to be on the property.”

It was a particularly brazen attempt on Williams’ part to get ahead of the legal process. The company was already scheduled to take the nuns to court later this month when it filed its emergency motion. The regulatory process is not complete yet either. The project has not yet received the permits from the state’s Department of Environmental Protection necessary to proceed with the pipeline.

Mark Clatterbuck, one of the group’s board members who helped construct the chapel, told the crowd that he thinks the company is getting nervous. He believes it understands that the chapel “is not sort of symbolic resistance, that it’s real and we’re not going away.”

Lancaster Against Pipelines website:

“'If completed, it will go through more than 350 waterways, 220 wetlands and would permanently fragment over 44 interior forests,' said Malinda Harnish Clatterbuck, a local Mennonite pastor and cofounder of Lancaster Against Pipelines. '… We believe the collective damage to the Susquehanna watershed (and therefore the Chesapeake Bay) is irreparable, and that the state needs to intervene for the future of clean water and clean waterways in Pennsylvania.'”

Lancaster Against Pipelines Facebook page:

* Images taken form Lancaster Against Pipelines posts

'The Force' is strong on the Liverpool Plains

Farmers on the Liverpool Plains joined forces in a main street walk in Gunnedah, 26 June 2014

People power at work on the NSW Liverpool Plains -  well done to everyone over the years who attended protest events, emailed, wrote, phoned. posted, tweeted and/or made formal submissions objecting to Shenhua’s mining expansion plans.

The Northern Daily Leader, 12 July 2017:

Shenhua says it still plans to progress the Watermark coal mine in light of the NSW government $262m buy back of half its exploration licence.

Shenhua Australia Chairman Liu Xiang said the planning for the mine would continue on the remaining section of the licence “in line with the planning approvals” from both the state and federal governments.

The NSW government said despite the agreement, Shenhua's expired exploration licence had yet to be renewed.

“An application to amend the current renewal application to remove the relinquished area has been received,” a Department of Planning and Environment spokesman said.

“The relinquished area will be removed from the title and the consideration of the renewal application for the remainder of the licence will be considered as per normal procedures and in accordance with the Act.”

In a statement to The Leader, Shenhua expressed its “disappointment” regarding the NSW government’s stance on mining operations on black soil plains, “as it would prevent its efforts” to get its exploration licence “wholly renewed”.

While Shenhua believes it “would have been able to responsibly expand its existing Watermark Coal Mine”, it has “come to terms with the NSW Government’s decision to not allow any mining on the black soil plains”.

A convoy of tractors protests the proposed Shenhua Watermark coal mine on the Liverpool Plains, September 2015

However, the fight continues…….

@AustralisTerry

Liberal Member of the NSW Legislative Council, Don Harwin
Minister for Resources, Minister for Energy and Utilities, and Minister for the Arts, Vice-President of the Executive Council

Phone	(02) 8574 7200
Fax	(02) 9339 5568
Email	Contact the Minister for Resources, Energy and Utilities, and the Arts

ABC News, 12 July 2017:

National co-ordinator for the Lock the Gate Alliance Phil Laird said anything less than the full cancellation of the project would not protect the farming systems.

"If we are going to hand over our best farming country to a coal mine that's owned by the Chinese Government, we've got to change our priorities," Mr Laird said.

"This coal mine is going to be 200 metres deep and its going to cut below the ridge line way below the level of the farm land and the aquifers.

"The impacts to those aquifers is unknown and the entire region depends on those aquifers for survival."

Public Now:

CSEC - CHINA SHENHUA ENERGY COMPANY LTD.

12/07/2017 | Press release | Distributed by Public on 12/07/2017 19:28

Voluntary Announcement- Announcement On Progress Of The Wate...

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(STOCK CODE: 01088)

VOLUNTARY ANNOUNCEMENT

ANNOUNCEMENT ON PROGRESS OF THE WATERMARK PROJECT

This announcement is made by China Shenhua Energy Company Limited (the "Company") on a voluntary basis. The purpose of this announcement is to keep the Shareholders and potential investors of the Company informed of the latest business development of the Group.

On 20 November 2008, the Company issued the Announcement in relation to Watermark Exploration Area Exploration License. Shenhua Watermark Coal Pty Limited ("Watermark Pty"), a wholly-owned subsidiary of the Company, entered into Exploration License with the state government of New South Wales, Australia (the "NSW Government"), pursuant to which Watermark Pty paid for the exploration license at a consideration of AUD299,900,000 and obtained the Watermark exploration area of approximately 195 square kilometers in aggregate.

On 29 June 2017, Watermark Pty reached an agreement with the NSW Government in relation to partial extension of the exploration license. Pursuant to the established policies of protection of agricultural activities on the black soil plains, the NSW Government withdrew the exploration license of approximately 100 square kilometres within Watermark exploration area and provided Watermark Pty with economic compensation amounting to AUD261,800,000, and accepted the application for the partial extension of the exploration license of non-black soil plains in Watermark exploration area. According to the agreement upon tendering in 2008, if the mining license of Watermark Pty is approved, then an additional AUD200,000,000 shall be paid to the NSW Government.

There are three planning open-cut mining areas, which are situated within the area of non-black soil plains, for the Watermark Pty Open-cut Coal Mine Project with recoverable reserves of approximately 290 million tonnes (JORC Standards), total designed raw coal production capacity of 10 million tonnes/year and designed service life of 24 years. The total investment amount of the project was approximately AUD1,470,000,000, among which 40% was contributed by Watermark Pty and 60% was financed by way of bank borrowings.

Up to now, the approval from the National Development and Reform Commission of the PRC, the approval for the environmental impact assessment from the Australian Federal Government and the approval from the Planning and Assessment Commission of the NSW Government have been obtained for the Open-cut Coal Mine Project. The environmental protection certification and mining rights license from the NSW Government will be applied for.

Watermark Pty will comply with the requirements of laws in Australia to promote the approval and construction of the Open-cut Coal Mine Project.

SHAREHOLDERS OF THE COMPANY AND POTENTIAL INVESTORS ARE ADVISED TO PAY ATTENTION TO INVESTMENT RISKS AND EXERCISE IN CAUTION WHEN DEALING IN THE SHARES OF THE COMPANY.

By Order of the Board

CHINA SHENHUA ENERGY COMPANY LIMITED HUANG QING

Secretary of the Board of Directors

Beijing, 12 July 2017

As at the date of this announcement, the Board comprises the following: Dr. Ling Wen, Dr. Han Jianguo and Dr. Li Dong as executive directors, Mr. Zhao Jibin as non- executive director, and Dr. Tam Wai Chu, Maria, Dr. Jiang Bo and Ms. Zhong Yingjie, Christina as independent non-executive directors.

It should be noted that the Shenhua Group has been named as one of the top 100 global fossil fuel companies collectively resposible for 72% of all global industrial Green House Gas (GHG) emissions.

"Water Is Life" anti-fracking campaign hit Australia's highways on 8 July 2017

Some images from the Water Is Life anti-fracking event held along the nation's highways on Sauturday, 8 July 2017.

Well done, one and all!

*All images found on Twitter