'Adani might proceed with Carmichael project'

Adani Enterprises is expected to proceed with building its A$7.2-billion ($5.2 billion) Carmichael coal mine and rail project in Queensland state, Australia resources and energy minister Josh Frydenberg said.

The project, approved by Australia's regulators October 15, is financially viable due to global energy demand and is unlikely to receive government subsidies, Frydenberg said in an Australian Broadcasting Corp interview on Sunday.

The Indian company controlled by billionaire Gautam Adani will have to contend with opposition from environmental groups and the lowest thermal coal prices in more than eight years. "The Carmichael project is of great importance to Queensland and Australia," Frydenberg said.

"We've seen a downturn in the price for coal but this project has more than a 40-year lifespan and there's a clear increase in demand for coal and indeed energy across the world." Global energy demand is expected to increase by a third by 2040, he said.

Adani plans to build a 388-kilometer (241-mile) rail line to link the mine to the Abbot Point port on the Queensland coast, according to its website. The project is subject to 36 strict conditions, environment minister Greg Hunt said in an e- mailed statement October 15.