Adani Enterprises' $16.5 billion coal project in Australia is a go

Gautam Adani-led Adani Enterprises on Tuesday morning said that its $8 billion (Rs 1,07,000 crore) coal mining and transportation project for its Carmichael mine in Central Queensland, Australia has been given the "green-light". 

Adani said, "I am proud to announce the official start of one of the largest single infastructure and job creating developments in Australia's recent history." The project is expected to generate over 10,000 jobs with the work beginning post September 2017. 

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The company said that it has already awarded contracts totalling more than $150 million for railway tracks and concrete sleepers for the planned 388-km railway line link between the mine and Abbot point. These contracts are given to local companies that will generate employment, Adani said. 

It is a historic day for Indian investment in Australia, he further said. 

Adani's Carmichael coal and rail projects have been mired in many environmental related controversies in the past with the company postponing some of its investments in the region in the past. 

Adani said, "We have been challenged by activists in the courts, in inner city streets, and even outside banks that have not even been approached to finance the project. We are still facing activists. But we are committed to this project."

Adani said that the company has already invested $3.3 billion (Rs 21,400 crore) in the project including buying the bulk coal handling port at port of Abbot Point. 

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The company today signed deals for design, construction, operations, suppply of materials and professional services. 

"The biggest -- worth $2.6 billion (Rs 16,900 crore) -- is with Downer Mining for the construction and operation of the Carmichael mine," Adani Enterprises said in the statement. 

Jeyakumar Janakaraj, Australia Head of Country and Chief Executive, Adani Enterprises said, "We are looking to ensure regional Queensland remains a great place to live, work and to raise a family."

"To those activists who sit in creature comfort and critcise us, I ask a simple question -- what are you doing for those people?" he concluded. 

Share price of Adani Enterprises rose in opening trade on BSE on Tuesday. At 938 hours, shares of the company were trading at Rs 122.35 per share, up 3.99%.