Published By : 07 Jun 2017 | Published By : QYRESEARCH
On Tuesday, June 6, 2017, the board of directors of the Adani Enterprises gave a go-ahead to the Carmichael mine and railway project to be set up in central Queensland, Australia. This US$16.5 bn project had faced several obstructions in past over environmental concerns. The Adani Group has agreed to give royalties to the Queensland government on the coal produced.
With the stocks of Adani Enterprises soared over 8.6% to US$1.9 on Tuesday, the markets appeared positive to these developments. According to Gautam Adani, the chairman of the Adani Group, this is the biggest investment done by any Indian company in Australia. He stated that they had to face various roadblocks, especially activists challenging them in courts, outside banks, and even in the streets of the city but they remain committed to this project as they are committed to addressing the energy poverty in India. He hopes other companies to follow suit.
A previous deal had to face headwinds, since locals and activists alleged that the project had received a way too much support from the taxpayers’ money.
Jeyakumar Janakaraj, Chief Executive, Adani Enterprises Australia, stated that the enterprise had already invested US$3.3 bn in the project and had bought bulk coal-handling units at Abbot Point port. The mine is anticipated to produce 25 million tonnes of coal per annum in the first phase. Gradually, the production of the mine would be increased up to 60 million tonnes annually.