Adani’s Carmichael mine receives $1 billion boost

Adani has signed a deal which will see the State Bank of India extend
a $1 billion credit facility to help build Carmichael mine in the Galilee
Basin.

The
memorandum of understanding is subject to the detailed assessment of the
company’s mine project and came on the same day the Queensland government also pledged to invest in the mine.

“The
MOU with SBI is a significant milestone in the development of our Carmichael
mine. It is a unique asset that lies at the heart of our investment in
Queensland and Australia, and aligns perfectly with our clear vision for
delivering energy security in the Indian market”, Adani Group chairman and founder,
Gautam Adani said.

The
Carmichael project holds more than 11 billion tonnes of thermal coal and the
company said first production is slated for 2017.

Adani
Mining chief executive Jeyakumar Janakaraj said the project will create
10,000 jobs and hand $22 billion to the state government in taxes and royalties.

The
mine, which was approved in July, will produce 60 million tonnes a year for 60
years.

Environmental groups are opposed to the project, and have taken Adani to court in order to stop its construction.

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