Upgrades for Adani mine plan
ADANI says it is well advanced with securing funding for its huge central Queensland coal projects as a leading advisory firm upgrades its prospects for the developments.
Adani’s Galilee Basin plans include a $ 50 million airstrip, a $ 2.5 billion coal rail line and $ 600 million spur line, a $ 300 million transmission project and its $ 4 billion stage 1 coal mine project. It also plans a $ 2.5 billion Abbot Point coal terminal expansion.
A major projects report by BIS Oxford Economics released earlier this year listed all of the projects as unfunded and “unlikely” to proceed.
But one of its authors, senior economist Adrian Hart, who will address an industry forum in Townsville today, told the Bulletin “positive” announcements by Adani had led them to upgrade the projects’ status to “credibly proposed”. It meant that while the projects remained listed as unfunded, BIS Oxford Economics were more confident they would proceed.
“It’s really based on the range of announcements that have been made … which have made us feel they are more likely to proceed,” Mr Hart said.
“( Adani) are sounding a lot more positive about development of the projects but at the end of the day funding is still a critical issue.”
Debate has raged about the coal developments with environmentalists targeting protests at banks and questioning the projects’ viability.
An Adani Australia spokesman yesterday said the company was moving forward with funding arrangements and would be happy to have the bulk of finance in place by the end of the year. He said Adani’s funding activities were “well advanced” and “therefore, the project will happen”.
BIS Oxford Economics’ Major Projects Pipeline Report lists the Galilee Basin airstrip with a start date of 2018- 19, does not provide a start date for the rail projects and has the mine and port work occurring from 2019- 20 and 2020- 21 respectively.
Mr Hart believed much of the construction work would ramp up nearer the end of their five- year outlook.