Antinuclear

Australian news, and some related international items

Adani struggles to get funding for coal megamine, ends $2bn deal to outsource project

Adani scraps $2bn deal to outsource Carmichael coalmine operation
Decision to end Downer EDI agreement follows Palaszczuk government’s blocking of federal loan for the Queensland project, Guardian, 19 Dec  17
Adani has blamed the Queensland government’s decision to kill off a taxpayer-funded loan for its decision to ditch a $2 billion agreement with a major contractor.

But the Indian miner says it remains committed to building its controversial Carmichael coalmine and the decision to part ways with Downer EDI has no bearing on that.

Adani had intended to outsource the operation of its Carmichael mine to Downer under an agreement that was worth $2bn at the time of its announcement in 2014, but now says it will run the mine itself.

It made pointed references to the Palaszczuk government’s loan veto and the need to keep production costs down in announcing the “mutual” split with Downer……

Anti-Adani protesters, who have targeted Downer over its involvement in the project, say it’s a welcome blow.

“Downer walking away from Adani is the biggest nail in the coffin for the Carmichael mine thus far. Adani are unlikely to find another Australian company willing to risk building and operating such a controversial mine,” Galilee Blockade spokesman Ben Pennings said.

“Adani have never operated a mine of this scale and have absolutely no experience operating mines in Australia.”

The very first act of Queensland’s newly re-elected Labor government was to make good on its election promise to veto a loan to Adani of up to $1bn from the federal Northern Australian Infrastructure Fund (Naif).

The government has said it backs the mine and wants the jobs it will create, but also says the project must be viable without taxpayer funds, including federal funds.

Adani is yet to secure funding for mine. Earlier this month, Chinese lenders ruled out providing finance, joining Australia’s big four banks in avoiding the controversial project……..https://www.theguardian.com/environment/2017/dec/18/adani-scraps-2bn-deal-to-outsource-carmichael-coalmine-operation

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December 20, 2017 - Posted by | business, Queensland

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