GVK, Lanco face Australian coal mine hurdles

Both projects lose money as Adani plans to develop a new mine

Even as the Adani Group is gearing up to invest $16.5 billion in a coal mine project in Australia, previous investments by GVK Power & Infrastructure and Lanco Infratech in similar projects have resulted in financial mess, according to bankers and analysts. 

While GVK’s yet-to-be-developed mine would require investments of another $500 million just to set up railway infrastructure, Lanco’s production has virtually collapsed with lenders taking over the project.

Analysts said GVK Power has reported consistent losses since the company became a guarantor to the $1.26-billion acquisition of the Alpha Coal in Australia by its subsidiary based in Singapore.