Adani Mining has announced that 70% of the coal it plans to produce from a huge mine in Australia has been signed off to buyers. This news places the company closer to sealing the full funding of the AUS$10 billion project.
The principle obstacle that Adani must navigate in securing loans for the Carmichael mine, rail and port project is dredging approval to expand its Abbot Point port.
Adani Australia CEO Jeyakumar said, "We have signed contracts for most of the production." He also commented, “Financial close is tied to dredging approval."
The first phase of the mine located in the untapped Galilee Basin in the state of Queensland is due to produce 40 million t a year. Adani are targeting full funding by the end of this year and to start production in late 2017.
Green groups are fighting the Carmichael project.
Australia's Minister for Industry and Science, Ian Macfarlane, said that he was confident Adani would build the Carmichael mine because India was looking for a stable supplier of coal for 30 years.
"I expect the Adani project to go ahead," Macfarlane said on the sidelines of an oil and gas conference.
Read the article online at: https://www.worldcoal.com/coal/21052015/adani-lines-coal-mine-buyers-2315/