With Adani Enterprises Ltd. unable to secure financing for its AUS$16.5 billion Carmichael project, Australians are becoming skeptical over whether the coal mine will become operational and provide local employment.
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"UPDATE: Adani coal mine operations"
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On 9 February, Aurizon withdrew its AUS$5 billion government fund application to construct a rail link between the mine’s Abbot Point coal terminal and the Galilee Basin. The decision came about after the company was denied a AUS$1 billion Northern Australia Infrastructure Facility loan to construct its own rail line.
Yet, Aurizon’s Managing Director Andrew Harding explained that the company still supports the project, stating: “If market circumstances change and our discussions with potential customers progress to commercial arrangements we will look at all possible financing arrangements to develop the rail solution.”
While The Construction, Forestry, Mining and Energy Union (CFMEU) is uncertain of the project’s future, if construction did proceed then the union would pursue an agreement with Adani.
Tony Maher, CFMEU National President, believes that “the environment groups have worked themselves up into a passion about Adani. I don’t know why. Adani is just another project and it should be judged on its merits.”
Australian Labour Party Leader Bill Shorten voiced similar opinions, declaring that “there is a role for coal [mining] in Australia.”
However, depsite opposition and financing difficulties, an Adani spokesman said that the company is still “focused on early works and are confident of progressing our project.”
The company is also looking elsewhere for additional mining options.
Rajendra Singh, Chief Operating Officer of Adani’s Coal Trading Business, stated: “We have a mine in Indonesia, and we are looking for more options there. We’re also keeping our eyes open for options in other areas like southern African countries, and countries like Russia. We are not eyeing for specific grades, we are looking for viable options. We mainly look at reserves, production costs and logistics.”
Read the article online at: https://www.worldcoal.com/mining/19022018/update-adani-coal-mine-operations/