Rail funding puts Adani mine on track
ADANI has finally stitched up funding for its massive coalmine in central Queensland.
Delayed by years of legal and environmental issues, the $6 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 Gautum 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 last 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.''