Adani Halts Work at Oz Coal Mine Project
The Adani Group’s suspension of engineering work at Rs 44,700 crore) Carits $7-billion Carmichael mine project in Australia, makes no sense even as a savings measure, and raises speculation that the Indian company might scrap the project altogether, Guardian Australia said. Yet to take off after five years of development, Adani intended to ship most of the coal from the mine to India for use in generating household power in line with Prime Minister Narendra Modi’s goal to connect all of India to the electricity grid during his tenure. Adani in a statement said the Carmichael project’s current budget based on previous anticipated approval timelines and milestones were no longer achievable due to delays in receiving various approvals from the Queensland state government. Adani has signed up buyers for about 70 per cent of the 40 million tonnes coal the Carmichael project is due to produce in its first phase, with production expected to begin in late 2017. It is understood that about 40 engineers working for one of Adani’s contractors, WorleyParsons, were among those pulled off the project. Tim Buckley, a director of energy finance studies, Australasia, at the Institute for Energy Economics and Financial Analysis, which opposes new coal developments said halting work at this stage “just crucifies the project”, the newspaper reported. Adani’s ambitions in Australia have been uncertain following a surprise election result in Australia’s coal-rich Queensland state, leading to a policy reversal, and heightened pressure to protect the Great Barrier Reef. The project mainly hinges on environmental approval to deepen a port on the fringe of Australia’ Great Barrier Reef in order to ship the coal, which generated opposition worldwide. An earlier plan to dump 3 million cubic metres of soil dredged at the port of Abbot Point into the sea about 25 km from the Great Barrier Reef was rejected. Australia’s minister for industry and science, Ian Macfarlane, though, says he is confident Adani will build the mine as India is looking for a stable supplier of coal.
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