Adani to build Australia coal mine despite local government change

The Gautam Adani-led Adani Group has said the construction of Australia's largest Carmichael mine will go ahead despite Saturday's poll victory in Queensland of the Labor Party that is committed to removing taxpayer support for the project.

"The result of the Queensland election does not influence the company's financial decision-making. Adani welcomes the opportunity to work with the new premier to meet and discuss a project that will deliver 10,000 jobs and $22bn in taxes and royalties that the Queensland government needs to invest right back into frontline services in the state," the Adani Group said in a statement here.

Unlike the exiting Liberal National Party, which promised funds for the 300-km rail line to take coal to the Abbot Point port, the Labor Party has committed removing state subsidies for the Carmichael coal and associated rail projects.

It also opposes "Reef dumping" under the "Saving the Great Barrier Reef" policy, and has committed to banning the sea dumping of capital dredge spoil within the Great Barrier Reef World Heritage Area.

The Adani Group said the election results do not influence the company's financial decision-making.

Adani chief executive Jeyakumar Janakaraj said the company will work with every partner and every government in ensuring that important projects proceed.

He said the Adanis' decision to proceed or not to proceed with this important investment was based on one thing only -- the cost basis of the project -- which continued to remain the case.

Importantly, he pointed out, the mine at Carmichael, which is the core of the project, will be within the first quartile of the cost-curve.

Coal production in the $16 billion Carmichael mine will start in 2017, with up to 60 million tonnes of coal a year set to be exported, making it one of the largest in the world.