Indian multinational conglomerate company, Adani group has decided to develop and operate its Carmichael coal mine in Australia on an owner operator basis, after failing to raise funds to outsource the project.
Adani Group had earlier offered Australian company, Downer to carry-out the operations of its mine, and was desperately looking for financiers who can invest in the coal mine and the associated infrastructure.
The Indian company was also seeking support from the Federal and State governments in Queensland region, including a NAIF (Northern Australian Infrastructure Facility) loan, which was aimed to provide financial stability to the coal project.
However, any hope of receiving the NAIF loan was shattered, when the newly elected Queensland government had vetoed against the coal project.
The Carmichael coal project had been highlighted for the wrong reasons amid local protest related to environmental concerns, thereby forcing several banks to stay away from the project. The NAIF loan rejection had left the Adani group with no choice than to terminate its contract with Downer and run the project by itself.
About Carmichael Project:
Adani group has invested over USD 3.3 Billion in Queensland, which encompass its port, rail and mine projects.
The Carmichael project includes building Australia’s largest thermal coal mine in the north Galilee Basin (approximately 160km north-west of Clermont in Central Queensland), which would be linked by a new 388 km standard gauge rail line to Abbot Point Port.
The coal mine is a core component of Adani’s plans for delivering energy security in India, as well as pursuing export opportunities in other Asian markets.
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