Adani ready to go – rail line is last piece in puzzle
ADANI has cleared the final hurdle for its controversial mega coalmine in Queensland, with funding secured for a vital rail link.
QLD Business
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ADANI has finally stitched up funding for its massive coalmine in central Queensland.
Delayed by years of legal and environmental issues, the $16.5 billion project’s final financial hurdle is the $1.35 billion in funding needed for the rail line, and that appears to be close.
The revelations came from Karan Adani, the son of the company’s owner Gautam Adani and chief executive of the ports business, who told Indian TV that it was now closing the financing of the rail project.
“We have all the Government approvals for everything,’’ he said.
“We have closed the financing of the mine, the port is already operational and now we are just closing the financing of the rail.
“I think that project is about $US1 billion ($A1.35 billion).’’
It follows a major victory for the company when it recently refinanced the debt owing on its Abbot Point coal port with a South Korean company, but despite Mr Adani’s confidence not all environmental approvals have been resolved with the key groundwater issue still awaiting a decision from the Federal Government.
The project was dealt a serious blow in November last year when the Palaszczuk Government said it would veto any taxpayer financing from NAIF for the rail project. That has meant a nine-month delay for Adani because it had to restart its financing deals.
Australian banks had also refused to finance the project because of climate change concerns.
Adani’s Australian business on Tuesday night said work to secure finance for the Carmichael project was “progressing well’’.
“Finance for the mine is contingent on securing finance for the rail component of the project as both are interdependent.
“We are 100 per cent committed to delivering the Carmichael project for Queensland,’’ the company said.
Premier Annastacia Palaszczuk said the Government was awaiting news from the company and the Government’s position on the project had not changed.
“The mine has to stand on its own two feet. It has to stack up financially and environmentally,” she said.
Federal Resources Minister Matt Canavan said the current strength of the coal market, which is delivering the highest prices for thermal coal since 2012, indicated the sense of opening up the Galilee Basin.
“We would be mad not to do everything we can to take the opportunity. Someone will take advantage of the high prices and bring on new coal capacity. I want it to be Queensland, not South Africa or Russia or America.’’
BUILDING A MEGAMINE
November 2010: Adani Mining Pty Ltd begins approval process
May 2014: Queensland’s
co-ordinator-general approves the $16.5b project subject to 190 conditions.
July 2014: Federal Government approves Adani’s proposal.
August 2015: Approvals set aside by courts because of the Federal Government paperwork bungle. Reapproved in October.
April 2016: Mining lease approved by State Government.
June 2017: Adani board gives go ahead for project pending finance.
November 2017: Premier Palaszczuk vetoes any prospect of funding from NAIF.
March 2017: Townsville emerges as the frontrunner to be named Adani’s FIFO hub after private meetings with Mayor Jenny Hill while visiting India. Townsville MP Scott Stewart puts forward a motion to the Parliament calling for Townsville to be the FIFO hub for the mine.
May 2017: A suspected Labor Left faction revolt on royalties puts thousands of jobs on the line after Adani puts Carmichael investment on hold because State Cabinet failed to strike a deal. Deputy Premier Jackie Trad insists noncommittal responses to direct questions are proof the Adani mine has her support.
June 2017: Adani gives final investment approval for the first stage of the Carmichael mine. Politicians feud over Adani’s FIFO hub, with Herbert MP Cathy O’Toole accusing Resources Minister Matt Canavan of favouring his home town Rockhampton over Townsville.
July 2017: Townsville Mayor Jenny Hill says she has put a proposal to Adani about the city’s FIFO benefits after the company contacted her.
Queensland Airports Ltd board member Jonathan van Rooyen argues against subsidies for the Indian miner despite Townsville Airport’s FIFO bid.
October 2017: Townsville and Rockhampton named joint FIFO hubs.
July 2018: Adani executive announces on Indian TV that funding has been secured for the mine to begin.
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