Monday, November 17, 2014

#Adani Group's Australian mining arm gets $1 billion credit from #SBI

State Bank of India (SBI) will extend $1 billion credit line to Adani Mining, the Australian subsidiary of Adani Enterprises.A MoU was signed today in this regard.

“The MOU with SBI is a significant milestone in the development of our Carmichael mine. It is a unique asset that lies at the heart of our investment in Queensland and Australia, and aligns perfectly with our clear vision for delivering energy security in the Indian market”, Adani Group Chairman and Founder, Gautam Adani said.

Adani Mining CEO and country head Jeyakumar Janakaraj said: "This project, which is evincing interest from private and public financiers in India and abroad, will deliver 10,000 jobs and $22 billion in taxes and royalties to Queensland in addition to helping Adani deliver cost-efficient power in the Indian market."

Adani’s Australian operations are headquartered in Brisbane and building a long term future with the state of Queensland remains key focus for Adani Mining, according to the press statement.

Questions have been raised on the rational of  this project funding by critics:

Adani's apparent momentum on the Carmichael project is in stark contrast to GVK's slow progress on another huge coal mine in the Galilee Basin, the Alpha project, which is co-owned by Australian billionaire Gina Rinehart. 

Much bigger coal rivals, like BHP Billiton and Glencore, have also shelved coal developments in Queensland at a time when a third of Australia's coal output is making losses. 

Australia's federal and Queensland governments are eager to see the mine built following the loss of more than 4,000 coal jobs over the past two years.