Slowdown in mining due to lower commodity prices: Australian Government Representative

Says the commodity cycles have bigger impact than anything else

Parliamentary Secretary to Minister for Foreign Affairs and Trade and Investment of Australian Government, Steven Ciobo, today said the slower pace of work in development of coal mines owned by Indian companies in his country was something that had to do with the low commodity prices.

Referring to the delays in developing coal mine assets owned by Adani  and GVK,  he said: “That is the reflection of the commodity crisis. The commodity cycles have bigger impact than anything else. I will stress again that the mines story is actually to do with commodity prices.” Both Adani and GVK had acquired mining assets in Queensland, Australia.

Adani last week reportedly told their engineering contractors to stop work on projects around the Carmichael mine in Queensland, including a joint venture rail line and the expansion of Abbot Point port. GVK's Hancock coal mine too is facing time overruns even though the Federal government granted environmental clearances sometime ago.

Speaking to Business Standard, a spokesperson of GVK said the Australian government was doing all it can to support these projects as they would not only generate export income but would also create employment to the local communities going forward.

Ciobo said his country needed foreign investments for national growth. “We will continue to attract foreign investments because we know that is in the national interest. It creates jobs. it creates prosperity. That is the story we want to share with India,” he said on the sidelines of an interaction with local industry.

An Australian delegation led by Ciobo yesterday met Andhra Pradesh chief minister N Chandrababu Naidu. During the meeting, an MoU between the state government’s AP Mining Development Corporation (APMDC) and NSL Mining Resources India Limited, a subsidiary of Australia’s NSL Consolidated Limited, was signed for beneficiation of low grade iron ore from reserves in Kurnool and Kadapa districts.