Adani To Build, Operate Australian Coal Mine By Itself

Henrietta Strickland
December 18, 2017

Adani has made a decision to manage its $16 billion Carmichael coal mine development in Queensland's Galilee Basin as an owner-operator, scrapping the agreements it had with contractor, Downer.

Queensland Prime Minister Annastacia Palaszczuk had long supported Adani's application for the loan, but reversed her position in campaigning during state elections last month after it threatened to derail her chances of retaining office.

Adani said in a statement that it is committed to the project and the split with Downer was "simply a change in management structure".

Adani and Downer said on Monday they had agreed to cancel all letters of award for mine services and related infrastructure, after the premier of the state of Queensland said she would veto a A$900 million loan from the federal government's Northern Australia Infrastructure Facility (NAIF) for the mine's rail line.

The controversial mine was supposed to be constructed by Downer Group after it was awarded the major contract believed to be about $2billion in June.

Adani added "Adani remains committed to develop the Carmichael project and will ensure the highest level of standards and governance".

In addition to the state government opposing a federal loan for the project, major lenders from Goldman Sachs Group Inc.to Australia's big four banks have preemptively excluded themselves from financing the Carmichael development due to their opposition to polluting fossil-fuel projects.

The Adani Group has for over five years battled the opposition to any expansion of the Abbot Point port, saying it will cut into the Great Barrier Reef World Heritage Area.

Adani has struggled to secure funding for the first stage, with a number of global banks choosing to avoid the project, given growing opposition to investment in fossil fuels.

Adani Australia now employs over 800 people and has invested over 3.3 billion dollars in Queensland, which is the biggest investments by an Indian company in Australia, the company said on its website.

Other reports by Click Lancashire

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