Adani group's Australian mine project cleared

The Adani group's proposed plan to build a $7-billion coal mine was today cleared by Australia's Queensland state which also announced a major investment in rail infrastructure to support the Indian conglomerate's mega project.

The Adani group welcomed the decision of the Queensland government to clear the project in the Galilee basin that will ensure that one of the mega mines proposed by the company and GVK gets a clearance next year.

Adani Mining Australia country head, Jeyakumar Janakaraj, noted that the announcement reflects the longstanding practice that has applied in comparable greenfield basins, such as the opening up of the Bowen Basin.

"While we have invested several billion dollars in our integrated mine, rail and port project to date, and are well-established on our course to build a long-term future with Queensland, any policy such as this that underpins confidence in significant infrastructure investments - any announcement that encourages additional investment from other players in the Galilee - is welcome.

"This announcement, coupled with Adani's MoU with the State Bank of India for funding the development of the Carmichael Mine, reflects the confidence close observers of our project have in our fundamentals.

"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," he said.

Adani is the proponent of the North Galilee Basin Rail (NGBR), Queensland's first standard gauge line, that is the centrepiece of the company's integrated mine, rail and port project, which will leave a valuable infrastructure legacy for this state in helping open up job-creating projects for Queenslanders in the Galilee.

The three proposed mega-projects in the Galilee Basin-- Adani's $16.5 billion Carmichael mine, GVK's $6 billion Alpha mine and Clive Palmer's $6.4 billion Waratah coal -- is expected to create 28,000 jobs.

The company has also signed a Memorandum of Understanding with State Bank of India (SBI).

"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," the company said.