Adani’s controversy-hit Carmichael coal mine project in Australia may not receive a A$900 million loan

Indian energy giant Adani’s controversy-hit Carmichael coal mine project in Australia may not receive a A$900 million (900 million Australian dollars) after the Labour party- led Queensland government said it will exercise its veto to not support the financial assistance.

The A$16.5 billion Carmichael coal mine project, one of the world’s largest, will start construction after being given the green light by the federal and Queensland state governments. The Adani group had applied for Northern Australia Infrastructure facility loan (NAIF) worth A$900 million for building a train line to connect its mine to the coast.

Earlier this month before the election day, Queensland Premier Annastacia Palaszczuk announced that her Labor party would veto the NAIF loan if it retains the power in the state. However, after reports of conflict of interest emerged, Palaszczuk said her government will exercise its ‘veto’ to not support the NAIF loan to remove doubt about any perception of conflict.

Palaszczuk’s team has won 43 seats in the 93 seat parliament and is leading in four of the undecided electorates, which would be enough to form the government. Media reports said that Labour could form a majority government with Palaszczuk on track to win the necessary seats. A spokesman for the premier was quoted by a media report as saying that it was now up to Adani to ensure the project was financed.

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