The Adani Group has said it has invested $3.6 billion in the Australian coal mines and its accounts are cleared by top auditors and tax officials across various geographies, including Australia.
Reacting to an Australian media report, which quoted a University of Sydney professor alleging that Adani Mining, the Australian subsidiary of Adani group, is in a very fragile and perilous financial position, the group said several anti-coal mine activists are discrediting the company and its operations. But it will continue to go ahead with the project.
Professor Sandra van der Laan, a forensic auditing specialist at the university, said the current assets of Adani Mining are less than $30 million and its current liabilities are at $1.8 billion.
Adani’s Australian coal mine is surviving on a lifeline from its Indian parent — Adani Enterprises — which has promised to extend financial support to the Australian subsidiary for at least 12 months, van der Laan told ABC. She said the accounts show the owners have contributed less than $9 million in equity to the business, and the total liabilities exceed the total assets by more than half a billion dollars.
But Adani Group said like any greenfield project, the coal mine project will not generate income until the mine and rail are built and operating, and the coal can be sold and exported. “Until we start producing and selling coal, we will be continuing to invest in the development of the mine and rail and therefore, this will be treated as an accounting loss,” said the Adani Group.
The Adani Group has an ambitious plan to mine in Queensland, Australia, and then export it to India. It will also construct a railway line from the port to the coal mine in Australia.
The project recently received all clearances from the Australian government and it is now mobilising suppliers to start the project.
The Adani Group said over the past nine years, its contractors, employees, consultants, and other business partners have been paid. “Our operations are Australian businesses, operating under Australian financial regulations and taxation legislation,” it said.
“Like other Australian businesses, our accounts are annually audited and tested for matters such as insolvency and assessed against other financial responsibilities and accountabilities. Adani Mining is required to report its balance sheet to the Australian Securities and Investments Commission under Australian law, and our balance sheet has been publicly available for the past eight years for people to view,” it said.
With approvals for construction now in place, construction on the Carmichael mine and rail project is progressing well. The construction stage is due for completion approximately two years after approvals were received, and production of coal will shortly follow. The investment in the delivery of the Carmichael project was always expected to be a long-term investment, which is why Adani has remained committed to the project.
“Already Adani’s businesses in Australia have had major impacts on the Queensland economy, through its ownership and operation of Abbot Point Port Terminal, Adani Renewables’ solar farm in Rugby Run, and now with the delivery of the Carmichael project,” the group said. Fight down under
- Invested $3.6 bn in Australia
- Australian subsidiary accounts are audited by top firms
- Adani Mining accounts are publicly available
- To ramp up construction for coal mine site, railway project
- Coal production to start on schedule