Adani to self fund Carmichael coal mine

Adani
Protestors from the #stopadani movement, Image: Julian Meehan via Flickr

The controversial Carmichael coal mine in Queensland’s Galilee Basin in Central Queensland is set to go ahead with Adani announcing it will self-fund the project.

The project has struggled to attract financial backers, but will now go ahead, albeit scaled back. The scope of the project has been reduced from a 60 million tonnes a year, $16.5 billion mega-mine to 10 to 15 million tonnes a year costing around $2 billion.

Adani mining chief executive Lucas Dow said the scaling back of the project has allowed it to go ahead after eight years.

“We have already invested $3.3 billion in Adani’s Australian businesses, which is a clear demonstration of our capacity to deliver a financing solution for the revised scope of the mine and rail project,” he said in a statement.

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A Queensland Government spokesperson said there were concerns over alterations to the original proposal, saying the announcement involves “a rail corridor that will require, among other things, agreements with existing users and the operator”.

They also reiterated that no taxpayer money would go towards the project.

Federal Resources Minister Matt Canavan congratulated the company on its “focus and commitment to the project”.

“Adani has been a little Aussie battler. So many have written it off but they just keep chugging along,” he tweeted.

“The Carmichael project has the potential to create more than 7,000 new jobs in Queensland — a remarkable contribution to our regional and state economies.”

Adani has attracted a lot of controversy from environmental and Indigenous groups over the mine, with the #stopadani group saying it will fuel global warming and damage the Great Barrier Reef and water supplies.

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Some have commented on the timing of Adani’s announcement coinciding with devastating extreme weather events in Queensland.