Adani’s hopes for govt coal mine loan fade after Australian election

SYDNEY: Adani Enterprises Ltd faces a likely block on a A$900million (₹4,415-crore) government loan to help build a giant coal mine in Australia, with the left-leaning Labor Party on track for re-election in a state poll.

Queensland state premier Annastacia Palaszczuk, who supported Adani’s application for the federally funded loan to build a rail coal haulage line, said three weeks ago her government would veto the concessional loan.

The Labor Party, which faced a strong challenge to return to power, was leading after threequarters of votes were counted following Saturday’s poll, according to Australia Broadcasting Corp.

The mine’s location of 400 km from a Pacific Ocean shipping terminal means the challenge of financing infrastructure costs has been at the forefront of debate over the project’s economic viability.

“The Adani coal mine could be complicated by a position taken by Labor during the campaign to block any financing of related infrastructure,” Australia & New Zealand Bank said in a note on Monday.

The loan amounts to only a fraction of the overall A$16.5 billion cost of constructing the Carmichael mine, but was seen as a first step in reaching financial close on a project that has been delayed for years by environmental opposition.

Adani was not immediately available for comment.