India’s Adani drops contractor for controversial Australia coal mega mine
The move marks the latest blow to the long-delayed Carmichael mine, which has yet to line up financing
Embattled Indian miner Adani plans to develop and run its contentious Carmichael mega coal project in Australia on its own after parting ways Monday with mining services giant Downer.
The massive US$16 billion mine, destined to be one of the world’s largest, has been beset with problems, encountering numerous regulatory and legal hurdles, leading to seven years of delays.
A lease was finally granted last year, but environmentalists have maintained a high-profile campaign against it, claiming it will harm the nearby Great Barrier Reef, which is already threatened by climate change.
And last week, the Queensland state government vetoed its request for a A$1 billion loan from the Northern Australia Infrastructure Facility (NAIF) to help build a rail line to connect the mine to port.
In a bid to keep costs down, Adani said it had cancelled a conditional A$2 billion contract with Downer, which was appointed in June to construct and operate the mine.