Adani Secures A Key Step Forward with Funds for Rail Project

What’s been described as the last piece of the puzzle for the future of the controversial Carmichael Mine, the funding of the rail project, has now been achieved according to executives of Adani.

Karan Adani, the son of Adani’s owner Gautam Adani and chief executive of the ports business, has told Indian TV that the company is now closing the financing of the rail project.

“We have closed the financing of the mine; the port is already operational and now we are just closing the financing of the rail. I think that project is about $US1 billion ($A1.35 billion).’’

The announcement follows the recent company success for the Carmichael Project when it was able to refinance the debt owing on its Abbot Point coal port – Another move opponents believed would not be possible.

The final hurdles have been this funding for the rail project and the resolution of the key groundwater issue which is still awaiting a decision from the Federal Government.

The much-vaunted $1.35 million project has been delayed for years, tied up in massive legal battles brought on by environmentalists opposed to the mine.

The State Government also dealt the project a blow during last year’s election campaign when the Premier backflipped and withdrew State support for a for Federal Loan to Adani to facilitate the building of the rail line.

At the time environmental groups claimed it was a move that would kill the project completely, suggesting the company would be unable to secure funding from other sources.

The Premier said, at the time, that the government did not oppose the project but that “The mine has to stand on its own two feet. It has to stack up financially and environmentally.”

Nine months on and the funding issues now appear close to being overcome.

In a statement, Adani’s Australian business has also confirmed that that work to secure finance for the Carmichael project was “progressing well’’.

“Finance for the mine is contingent on securing finance for the rail component of the project as both are interdependent. We are 100 % committed to delivering the Carmichael project for Queensland.’’

Overall the Carmichael Mine project is a $16.5 billion venture.

Premier Annastacia Palaszczuk says the Government is awaiting news.