Spinning wheels with the Adani Coal Project: How culture influences the way we negotiate

The media has a seemingly endless story when it comes to the development of Adani’s Carmichael coal mine project in Queensland. Originally touted to be the world’s largest coal mine project worth approximately $21 billion, it has drawn immense controversy about its planned economic benefits, financial viability, requests for government subsidies and loans, and its expected environmental impacts. To make the story more interesting, the project includes a variety of stakeholders, including opposing political parties at both state and federal levels, as well as an Indian based multinational that will be mining Australian resources at a time when the topic of nationalism is globally significant.

While you’ve probably seen a mix of articles from the media ’bashing’ one (or multiple) of these stakeholders about the endless negotiations and backroom ‘deal making’; as a company that works with some of the largest companies in Australia on their major contracts, we thought it would be worthwhile shining some light on some of the influences that might be extending the negotiation process. This article touches on three factors that will be impacting the progress of the Carmichael negotiations:

  1. Differences in cultural values, communication, and negotiation styles between Australia and India
  2. Size and complexity of the project
  3. Complex stakeholder environment

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Is Procurement working in a silo from your Business Operations?

It’s rare for organisational structures and operating models to adequately communicate roles and responsibilities of business units and staff, including how they should collaboratively work together to deliver better outcomes for the business. This gap, and the subsequent silos formed and friction that occurs, is extremely evident in most Procurement and Operations relationships.
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