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India's Adani Enterprises will fully fund its controversial Carmichael coal mine and rail project in Australia, Adani Mining Chief Executive Lucas Dow said on Thursday, according to a statement from the group.
The mine has faced years of delays amid opposition from environmental groups, who argue it will contribute to global warming. Some banks have ruled out taking any role in funding the project.
"The project stacks up both environmentally and financially," said Dow, addressing community leaders, mining industry contractors and suppliers at a mining club luncheon in Queensland. Construction and operation of the mine will now begin, he said.
The company statement said the funding decision follows recent changes to simplify construction and reduce the initial capital requirements for the project. The mine is located in the remote Galilee Basin in the central outback that some analysts believe has the potential to become Australia's largest coal-producing region.
All coal produced in the initial ramp-up phase of the mine will be consumed for its own requirements, said Adani. The miner had earlier aimed to start shipping coal from the Carmichael mine by March 2020.
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