Adani Wins Queensland Approval for Australian Coal Project

Analysts say despite approvals, it'll be tough to raise money for the project amid a prolonged downturn in coal market.
Indian billionaire Gautam Adani speaks during an interview with Reuters at his office in the western Indian city of Ahmedabad April 2, 2014. | Reuters
Indian billionaire Gautam Adani speaks during an interview with Reuters at his office in the western Indian city of Ahmedabad April 2, 2014. | Reuters

SYDNEY: Adani Enterprises Ltd was on Sunday granted approval by Australia's Queensland state government to proceed with a proposed A$10 billion ($7.7 billion) project in the Galilee Basin.

Queensland Premier Annastascia Palaszczuk said in a statement that the approvals gave Adani permission to mine coal reserves estimated at 11 billion tonnes and to build haul roads, workshops, power lines and pipelines associated with the mine.

"Some approvals are still required before construction can start, and ultimately committing to the project will be a decision for Adani," Palaszczuk said.

Adani could not immediately be reached for comment.

Environmentalists are still fighting Adani's project on numerous fronts and lobbying banks not to provide loans. They cite potential damage from port dredging, shipping and climate change stoked by coal from the mine.

Analysts say even with approvals in hand, Adani will find it tough to raise financing for the project amid a prolonged downturn in the coal market.

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