Adani blames loan veto for deal fail

ADANI has blamed the Queensland Government’s decision to kill off a taxpayerfunded loan for its decision to ditch a $2 billion agreement with a major contractor.

But the Indian miner says it remains committed to building its controversial Queensland coal mine and the decision to part ways with Downer EDI has no bearing on that.

Adani had intended to outsource the operation of its Carmichael mine to Downer under an agreement worth $2 billion at the time of its announcement in 2014, but now says it will run the mine itself.

It made pointed references to the Palaszczuk Government’s loan veto and the need to keep production costs down in announcing the “mutual” split with Downer.

“Adani remains committed to develop the Carmichael project and will ensure the highest level of standards and governance,” it said in a statement yesterday.

Anti-Adani protesters, who have targeted Downer over its involvement in the project, say it is a welcome blow to the project.

“Downer walking away from Adani is the biggest nail in the coffin for the Carmichael mine thus far. Adani are unlikely to find another Australian company willing to risk building and operating such a controversial mine,” Galilee Blockade spokesman Ben Pennings said.

“Adani have never operated a mine of this scale and have absolutely no experience oper- ating mines in Australia.”

The very first act of Queensland’s newly re-elected Labor Government was to make good on its election promise to veto a loan to Adani of up to $1 billion from the federal Northern Australian Infrastructure Fund.

Adani is yet to secure funding for mine. Earlier this month, Chinese lenders ruled out providing finance for the Adani Carmichael coal mine, joining Australia’s big four banks in avoiding the controversial project. AAP