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Adani Enterprises gains as Siemens AG to fulfill Australia coal mine contract

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Adani Enterprises rose 2.64% to Rs 214.20 after Siemens AG said it will remain involved in a controversial Adani coal mining project in Australia.

Germany's Siemens has decided to stand by a contract linked to a coal mine in Australia that climate activists had called for it to drop.

Germany's Siemens AG on 10 December 2019 signed the contract to supply signaling systems for a rail link between the Adani Carmichael coal mine and a port. The contract is worth about $20 million to Siemens.

Climate activists wanted Siemens to quit the mine project because emissions from coal-fired power plants contribute to global warming. Opposition has worsened in the wake of Australia's recent devastating bushfires.

Siemens CEO, Joe Kaeser, said that, given the importance of legitimate environmental concerns, we have secured the right to pull out of the contract if our customer violates the very stringent environmental obligations.

In 2010, Gautam Adani led-group purchased Carmichael coal mine in Gaililee Basin in central Queensland, Australia.

Shares of Adani Enterprises advanced 6.27% in three trading sessions to its current market price of Rs 214.20 from its recent closing low of Rs 201.55 on Wednesday, 8 January 2020.

On a consolidated basis, Adani Enterprises' net profit fell 0.9% to Rs 179.23 crore on a 7.5% fall in net sales to Rs 8,464.19 crore in Q2 September 2019 over Q2 September 2018.

Adani Enterprises is an integrated infrastructure company with businesses spanning coal trading, coal mining, oil and gas exploration, ports, multi-modal logistics, power generation, and transmission and gas distribution.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, January 13 2020. 15:14 IST