Adani Enterprises Applies To Australia Govt Fund for Coal Mine Railway Financing

Adani Enterprises Applies To Australia Govt Fund for Coal Mine Railway Financing

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Adani Enterprises

On Monday, Australia’s resources minister said, to build a rail line that is part of a $16 billion coal project in the state of Queensland, India’s Adani Enterprises has applied for financing from an Australian infrastructure fund.

After some major banks were not willing to participate in the controversial coal project, financing from the A$5 billion Northern Australian Infrastructure Facility (NAIF) would offer a boost to Adani.

Since starting work over five years ago on the Carmichael development, opposition from green groups who say it will contribute to global warning had been battled down by Adani.

In an interview in Tokyo on Monday, when asked if the Indian company had approached the infrastructure fund, Matthew Canavan told Reuters, “(NAIF) is considering Adani’s proposal at the moment.”

Canavan, on his visit to the Japanese capital to meet buyers of Australian commodities, said other than the rail line Adani had not yet asked for financing for parts of the project. The amount of funding Adani had requested was not disclosed by him.

Adani’s Australian unit was not immediately available for comment.

Last year, in order to promote the economic development of Australia’s north by offering loans for infrastructure projects including airports, ports and railroads NAIF was set up by the Australian government.

Adani has still to announce funding for the project.

Banks have been lobbied by Environmentalists not to provide loans and a number, including Germany’s Deutsche Bank and Commonwealth Bank of Australia, have stated that they will not participate in the project.

In the middle of this year the Indian company wants to start construction, Adani Australia chief executive Jeyakumar Janakaraj told reporters in December, when he announced an agreement to hire local workers with the Queensland state government.

Comprising six open-cut pits, five underground collieries and the rail line, to the Queensland coast, environmentalists are also worried the mine will produce so much coal for export to India that it will require a mega-port expansion into the Great Barrier Reef World Heritage Area.

Adani has said the project would not harm the reef but will create thousands of jobs and will provide India with cleaner burning coal only found in Australia.

News Source: economictimes.indiatimes.com

Picture source: google.co.in

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