| Date: |
30-06-2015 |
| Subject: |
Engineering work halted at Australia's Carmichael coalmine project: Adani Group |
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MUMBAI: Adani Group has suspended work at its $7 billion Carmichael mine project in Australia due to delay in approvals, the Gautam Adani-led Adani Enterprises said in a statement to the bourses.
ET had reported on June 25 that the Adani Group has halted work at the project and is revising its budget and strategy given that the project is yet to take off after five years of development.
Responding to the Bombay Stock Exchange's query on the ET story, Adani Enterprises said, "As a result of changes to a range of approvals over that time, it's necessary to synchronise our budget, project timelines and spending to meet those changes. Accordingly, we have suspended detail engineering work. However, the remaining activities related to the project are still continuing."
Adani Enterprises said that for the past six to 12 months it has maintained a level of investment, jobs and sub-contract engagement for its mine, rail and port project in Australia in anticipation of finalising approvals and decisions. The project budget was based on anticipated approvals timelines and milestones and therefore needs revision.
Adani Group floated Adani Mining Private, a special purpose vehicle, in August 2007 with the purpose to undertake activities related to development and operation of domestic coal mine. The SPV is now being merged with Adani Enterprises as a part of the group's restructuring plans.
Adani group's investment in Australia was aimed at mining coal from the coal-rich nation , transporting it 300 km to the Abbot Point port near the ecologically sensitive Great Barrier Reef and export it to India to fuel power plants run by the company.
The projects attracted controversy from the beginning with environmentalists warning of severe damage to the Great Barrier Reef. The timeline for the project has been pushed back due to delay in getting approvals for the project, which would be Australia's largest coal project. Adani is also facing a federal case from Indigenous landholders and conservation groups challenging the Indian conglomerate's project which may further delay the government's decision to give it a green signal.
Source : economictimes.indiatimes.com
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