BackAdani to invest $6.9 bn in developing Australian coal project
Adani to invest $6.9 bn in developing Australian coal project
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New Delhi: Adani Enterprises will invest $6.9 billion in developing its recently acquired Australian coal mines, the company said on Monday.
“Adani is committed to invest $6.9 billion (about Rs30,500 crore) in Australia for developing mine, rail and port project in its Galilee Basin coal mine in Queensland, Australia to produce up to 60 million tonnes of coal a year at its peak," it said in a statement.
The acquisition is one of the largest coal mine deals by an Indian group. The company in August bought the coal mine for about Rs12,600 crore in a cash and royalty deal.
As part of the buyout deal, the group had paid Rs2,100 crore in cash and is to make additional payment of about Rs10,500 crore over the next 20year in royalties to Linc on the estimated 7.8 billion tonnes of coal reserves.
“We are targeting first coal by the end of 2014 and a production of between 50 and 60 MMTPA to be achieved by 2022," executive chairman and founder, Adani Group, Gautam Adani said.
“This investment represents the largest ever Indian investment in Australia and an important benchmark investment in low rank thermal coal assets, a segment that has previously been ignored because of inadequate logistics," he added.
Meanwhile, the group’s office was opened at Brisbane on Monday by Queensland Premier Anna Bligh, which the company said is a milestone towards its goal of mining 200 million tonnes per annum (MTPA) of coal, generating 20,000 MW of power and moving 200 million tonnes of cargo through its ports by 2020.
It was also awarded preferred proponent status for developing the Dudgeon point terminal in Macay, Queensland, which gives the Adani Group the right to develop a coal terminal with an annual capacity of 30-60 million tonnes.
Sources earlier said the group was in talks with Coal India Ltd (CIL) to take on board the state-owned company as a partner for developing the Australian mines.
In its efforts to secure more coal deposits overseas, Adani Enterprises also entered into a $1.65 billion deal with the Indonesian government and its mining company PT Bukit Asam for setting up rail and port infrastructure there and get exclusive rights to source coal to India.
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