You are here: Home » Companies » News » Real Estate
Business Standard

Australian govt will not finance rail link for Adani's $16 bn project

Before its re-election last year, the Queensland Labor government promised to veto Adanis application for a loan from the Naif

Press Trust of India  |  Melbourne 

Adani's coal mine project, protests against Adani coal mine
A protester holds a sign as he participates against Adani’s coal mine project in Australia. (Photo: Reuters)

In a blow to the group, the today said it would not a vital rail-link project that supports beleaguered giant's 16.5 billion dollars mine.

has sought a 900 million dollar concessional loan for rail to link the mine to port. The announcement by could spell the end of the project entirely if it can't secure private

Andrews, the for vocational education and skills, said that since "all the approvals are already in place for the mine" it was now "just a financing issue for Adani" whether the mine goes ahead.

"Let's be clear, though, given the position that the state government took to the last election and their election, there won't be financing from the federal government," Andrews was quoted as saying by

Asked to confirm there would not be federal financing, she said: "No it won't be proceeding. For there to be money available from the Naif (Northern Infrastructure Facility), that would require the support from the government".

She further clarified that the advice she has been given by the resource and given the position the government took to last year's state election there won't be financing from the for this rail line

Nevertheless Andrews talked up the benefits of the mine, labelling it "very important for employment and jobs in northern Australia" and said she would like to see it proceed.

There was no immediate reaction from the

The Labor leader, Bill Shorten, stepped up the opposition's rhetoric on the last week, first refusing to rule out stopping the project on Tuesday and then on Friday threatening the mine's licence in a bid to boost the party's environmental credentials for the Batman byelection.

Before its re-election last year, the Labor government promised to veto Adanis application for a loan from the Naif.

Federal Labor, which has already ruled out providing a public subsidy or loan to the Adani mine, is now looking at further measures to block it.

The project, expected to create hundreds of jobs in Australia, has been facing opposition from environmentalists and indigenous groups.

The has for over five years battled the opposition to any expansion of the Abbot Point port, saying it will cut into the Great Barrier Reef World Heritage Area.

The entered in 2010 with the purchase of the greenfield mine in the Galilee Basin in central Queensland, and the near Bowen in the north.

currently employs over 800 people and has invested over 3.3 billion dollars in Queensland, which is the biggest investments by an Indian company in Australia, the company said on its website.

First Published: Mon, February 05 2018. 00:17 IST