Brisbane, 17 November 2014

The Adani group’s proposed $7-billion coal mine in the Australian state of Queensland was cleared by the state government Monday.

The infrastructure conglomerate also won a commitment from the state government to hold short-term, minority stakes in rail and port infrastructure needed to unlock massive coal reserves in the untapped Galilee Basin, The Melbourne Age reported.

“We are bringing on board valued partners in different facets of this integrated project, ensuring we will meet our guidance of first coal in 2017,” Adani Mining CEO Jeyakumar Janakaraj was quoted as saying in a statement.

Analysts and project finance experts, however, believe that Adani may have underestimated the challenge of raising funds for the project.

Adani Enterprises has also signed a memorandum of understanding (MoU) to line up a loan of up to $1 billion from the State Bank of India (SBI) for the Carmichael mine in Queensland, which it aims to build by the end of 2017, the report said.

“The MoU with SBI is a significant milestone in the development of our Carmichael mine,” Gautam Adani, Adani Group chairman and founder, said in a statement in Brisbane.

Adani came to Brisbane with a business delegation from India for the G20 summit.

Adani Mining, SBI sign MoU for Australia

Melbourne, 17 November 2014

Adani Mining, the Australian subsidiary of Adani Enterprises, and the State Bank of India (SBI) Monday signed a MoU for $1 billion credit line for a coal mine project.

The Adani group said: “The MoU provides for a credit facility of up to $1 billion subject to the detailed assessment of the company’s mine project at Carmichael, near Clermont in Western Queensland.”

Adani’s Australian operations are headquartered in Brisbane and the company has made building a long-term future with the state of Queensland a key focus of its Australian arm.

According to the statement, the mine has a certified coal resource in excess of 11 billion tonnes and is the centrepiece of Adani’s integrated mine, rail and port project in Queensland.

“The MoU with SBI is a significant milestone in the development of our Carmichael mine,” the group said in a statement.

“It is a unique asset that lies at the heart of our investment in Queensland and Australia, and aligns perfectly with our clear vision for delivering energy security in the Indian market,” Adani Group chairman and founder Gautam Adani was quoted as saying.

Adani Mining CEO and country head Jeyakumar Janakaraj said: “This project, which is evincing interest from private and public financiers in India and abroad, will deliver 10,000 jobs and $22 billion in taxes and royalties to Queensland in addition to helping Adani deliver cost-efficient power in the Indian market.”