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Adani picks funding advisor for giant Australia coal mine: sources

Reuters  |  SYDNEY 

By James Regan and Sharon Klyne

SYDNEY (Reuters) - Enterprises has appointed corporate firm Grant Samuel to advise on funding for its multi-billion dollar mine in the Australian outback, two sources with knowledge of the matter said on Thursday.

Analysts have raised doubts about whether can fund what would be Australia's biggest mine given opposition from green groups and volatile prices.

Banks including Deutsche Bank and Commonwealth Bank of have already said they will not provide funding.

"has mandated Grant Samuel to advise on the financing," one of the sources said. Both sources asked not to be identified as they were not authorised to speak with media.

Grant Samuel declined to comment on whether it had been appointed to advise on funding for the Carmichael mine, which had originally planned to develop at a cost of A$16.5 billion ($13 billion), before last year downsizing the first stage and trimming the cost to A$4 billion.

spokesman Ron Watson declined to comment on the appointment of Grant Samuel, but said it now needed to borrow under A$2 billion to get the project off the ground. That would include A$900 million in loans under Australia's Northern Territory Infrastructure Facility (NAIF) programme.

"We are already talking with a number of international financial institutions," Watson said.

Adani, which uses to generate electricity for its power business in India, has set a self-imposed first quarter 2018 deadline to complete funding, he added.

The mine's location 400 kilometres (250 miles) from a Pacific Ocean shipping terminal means the challenge of financing infrastructure costs has been at the forefront of debate over the project's economic viability.

also continues to face legal and social hurdles amid opposition from environment groups arguing the mine will contribute to global warming and damage the Great Barrier Reef.

The firm has already invested A$3.3 billion in the project, which it says does not threaten the reef and will provide India with cleaner burning Australian

In the past, Grant Samuel in has worked with iron ore miner Fortescue Metals Group on a $2.4 billion debt raising and also advised Whitehaven on refinancing a A$1.4 billion loan, according to its website.

($1 = 1.2702 Australian dollars)

(Reporting by James Regan and Sharon Klyne; Editing by Joseph Radford)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, August 10 2017. 13:32 IST
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