The Adani Group on Thursday announced plans to invest $ 6 billion by 2015 to develop its three core clusters of resources, logistics and energy. The investment will be funded by a mix of internal accruals, equity and debt. It will largely go to its new Australian coal mining operation.
The group is the largest importer and supplier of coal and owns mining and development rights for 130-million tonne coal mining in India. It also owns coal mining rights in Indonesia and Australia. It expects to manage 200 million tonnes of coal by 2020.
The Gautam Adani-owned company has commenced coal mining exploration in the Galilee Basin in Queensland, Australia. Its investment there marks the single largest investment by an Indian company in Australia. The project also involves construction of a 400-500 km railway track and redevelopment of a port.
PTI reports:
“We will be investing $6 billion into our overseas assets (spread in Australia and Indonesia) by 2015,” Group Chairman Gautam Adani told reporters here after unveiling a new corporate identity. The Adani Group said the proposed investment was over and above the overall spending into the group's various business interests under its ‘vision 2020' “We have commenced our mining exploration in the Galilee Basin in Queensland, marking the culmination of the first phase of our foray into Australia,” Mr. Adani said. Mr. Adani said the group would hive off its realty business to the family on an arms-length pricing basis, as the group considered real estate to be a non-core activity. When asked whether the focus on resources would also include entering new areas, he said ‘no', adding that the company had no interest in any other asset class as of now About the group's plan to pick up British Gas stake in Gujarat Gas, Adani spokesman Ameet Desai said, “The group is evaluating the potential acquisition of BG Group stake and the due diligence is under way.”
