Adani’s Australia coal mine project gets final approval

After battling environmental protests and legal and regulatory hurdles for seven years, Adani Enterprises Ltd (AEL) said on Tuesday that it is finally ready to proceed with the $16.5-billion Carmichael mine and rail projects in central Queensland, Australia.

The company’s board has given its final go-ahead to the project, chairman Gautam Adani said. “I am proud to announce the official start of one of the largest single infrastructure and job-creating developments in Australia’s recent history.”

Investors cheered the announcement. Shares of Adani Enterprises rose 8.6% on the BSE on a day the Sensex fell 0.38%.

Adani, which has invested $3.3 billion in the project, has battled protests by environmentalists who claim the coal project would increase carbon pollution and cause irreparable damage to the Great Barrier Reef marine park in northern Queensland.

Adani’s announcement comes on the heels of an agreement reached with the Queensland government last week on royalty payments for the coal project.

The Adani Enterprises board had earlier deferred a final go-ahead for the project pending the royalty agreement.

The company said it had signed contracts for design, construction, operations, supply of materials and professional services. This includes a $2.6 billion agreement with Downer EDI Ltd for the construction and operation of the Carmichael mine.

The company has announced in the past few weeks contracts totalling more than $150 million for railway tracks and concrete sleepers for the planned 388km standard gauge rail link between the mine and the Abbot Point port terminal.

Queensland premier Annastacia Palaszczuk on Tuesday officially opened Adani’s regional headquarters in Townsville, from where the firm will oversee the construction and operations of the project.