MELBOURNE Aug 14 India's Adani Mining has won
state approval to build a rail line for its $15 billion
Carmichael coal project in Australia, it said on Thursday,
bringing it a step closer towards making a final decision on
whether to go ahead with the massive scheme.
The state of Queensland approved the A$2.2 billion ($2
billion) North Galilee Basin Rail project, a 300 kilometre (186
mile) railway to connect the Carmichael mine and potentially
other mines in the untapped Galilee Basin to the east coast port
of Abbot Point.
Despite analysts' views that Adani's project would be
unprofitable at current coal prices, the company said it
remained committed to pushing ahead with it to supply coal to
power stations in India.
"Adani looks forward to continuing to work with our project
partners and all levels of government to see this through,"
Adani Mining, the Australian arm of Adani Enterprises,
said in a statement.
Adani recently signed an agreement with POSCO Engineering &
Construction Co Ltd to build the rail line. Costs
and other details of the contract are due to be set by the end
of this year.
The Indian firm has yet to line up funding for the
Carmichael mine, which could become Australia's largest coal
mine at 60 million tonnes a year, as a deep slump in coal prices
has scared off lenders.
It also continues to face challenges from green groups
worried about carbon emissions from burning coal and damage to
the Great Barrier Reef from port expansions and coal shipping.
(1 US dollar = 1.0762 Australian dollar)
(Reporting by Sonali Paul; Editing by Joseph Radford)