Adani Group is planning to develop A$16 billion Carmichael coal mine in Australia on its owns, as the company has cancelled its A$2 billion contract with mining services firm Downer.
This, after the Gautam Adani-led group failed to obtain cheap loans from the Australian government for the controversial project.
“Following on from the NAIF veto last week and in line with its vision to achieve the lowest quartile cost of production by ensuring flexibility and efficiencies in the supply chain, Adani has decided to develop and operate the mine on an owner operator basis,” the company said in a statement.
Last week, the premier of Queensland said she would veto a A$900 million loan from the federal government’s Northern Australia Infrastructure Facility (NAIF) for the mine’s rail line.
“Adani and Downer have mutually agreed to cancel all Letter of Awards and Downer will provide transitional assistance until March 31, 2018,” the statement added.
Adani Australia currently employs more than 800 people and has invested more than $3.3 bn in Queensland, one of the biggest investments by an Indian company in Australia.
“Adani remains committed to develop the Carmichael project and will ensure the highest level of standards and governance. This will not affect our commitment or the number of local jobs across Queensland,” the company said adding that the split with Downer was “simply a change in management structure.”
