Adani gets Australian government support for coal mines project

India’s Adani Enterprises Ltd has been given the go ahead for the coal mines project in Australia which is worth $21.7 billion The Dollar Business Bureau

Adani is planning to build world’s largest coal mines worth $21.7 in Australia

India’s Adani Enterprises Ltd. has been given the green signal to go ahead with its coal project worth $21.7 billion in Australia. Queensland signed a bilateral trade agreement on Monday and said a company should be granted all state governments’ approval to build one of the world’s largest coal mines in Australia. According to Anthony Lynham, State Mining Minister, this project can create many jobs as Adani expects that it will generate $22 billion in state taxes and royalties. Last month, Adani was granted a formal environment authority for a project by the state’s department of Environment and Heritage Protection, however, with 140 conditions. But the company has not crossed the last difficulty of gaining a mining license from the state before it begins project development. It is also mentioned that the contract will only be approved when agreements related to compensation were reached. Apart from this, the Australian government supports the development of the Galilee Basin for economic development and employment. On the other hand, the $7.45 billion project in the Galilee Basin, which has not yet been developed got delayed due to challenges from environmental campaigners. Last December, the Queensland court rejected the proposal to stop it. The parliament of the Australian state of Queensland is supporting this move of Adani’s Carmichael mines project in the Galilee Basin. But there are some challenges to the mines project :

There will be no financial support provided via Queensland’s taxes
The dredging at the coal terminal will only be given a go-ahead until Adani demonstrates that it has the necessary finance for the mine, rail, and port project.

March 16, 2016 | 04:00pm IST

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The Dollar Business Bureau - Mar 16, 2016 10:27 IST

Adani gets Australian government support for coal mines project

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