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18 December 2017
 |
| Adani (The Total Investment & Insurance Solutions) |
Adani
on Monday said it has cancelled a 2.6 billion dollar contract with Australian
mining services company Downer as part of a cost-cutting drive, a week after
the Queensland government vetoed a concessional loan to the Indian giant for
the controversy-hit Carmichael coal mine.
The split comes after Downer was the target
of a nationwide activist campaign pressuring them to quit the 16.5 billion
dollar project in central Queensland, the ABC News reported. The Total Investment & Insurance
Solutions
In a setback to India's energy giant Adani,
the newly- elected Queensland government last week vetoed a plan to give a
900-million dollar concessional loan for the construction of a rail line in the
controversy-hit Carmichael coal mine project in Australia. The Total Investment & Insurance
Solutions
The Adani group had applied for the Northern
Australia Infrastructure Facility (NAIF) loan worth 900 million dollars for
building the 388-km rail line to connect the major coal mine to the sea port. The Total Investment & Insurance
Solutions
The 16.5 billion dollar Carmichael coal mine
project is one of the world's largest.
The move to cancel the contract raises
further questions about the fate of the massive project, with Downer one of
only two mine contractors ? along with Thiess ? considered capable of handling
an operation producing up to 60 million tonnes of coal a year, the report said. The Total Investment & Insurance
Solutions
Adani said in a statement that it is
committed to the project and the split with Downer was "simply a change in
management structure".
"Following on from the NAIF veto last
week, and in line with its vision to achieve the lowest quartile cost of
production by ensuring flexibility and efficiencies in the supply chain, Adani
has decided to develop and operate the mine on an owner operator basis,"
the statement said.
"Adani and Downer have mutually agreed
to cancel all Letter of Awards and Downer will provide transitional assistance
until March 31, 2018. Adani remains committed to develop the Carmichael project
and will ensure the highest level of standards and governance," the
statement said.
Adani said both parties had cancelled a
conditional 2.6 billion dollar contract as part of its cost-cutting drive
spurred on by the Queensland Government's veto of its 1 billion dollar
Commonwealth loan bid, the report said.
Earlier this month, China's two major
state-run banks said they have no plans to finance the Carmichael coal mine
project.
The Carmichael project, expected to create
hundreds of jobs in Australia, has been facing opposition from
environmentalists and indigenous groups.
The Indian energy giant has for over five
years battled the opposition to any expansion of the Abbot Point port, saying
it will cut into the Great Barrier Reef World Heritage Area.
The Adani group entered Australia in 2010
with the purchase of the greenfield Carmichael coal mine in the Galilee Basin
in central Queensland, and the Abbot Point port near Bowen in the north.The Total Investment & Insurance
Solutions
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