Ahmedabad: The Adani Group is understood to be in advanced talks with the Exim Bank of Korea and some Chinese banks to raise over $1bn for building a $10bn coal project in Australia that includes the development of a coal mine and requisite support infrastructure such as railway line and a port.
The Ahmedabad-based group’s fund-raising efforts come against the backdrop of the refusal of India’s largest bank, State Bank of India, to fund the project. Several foreign banks and financial institutions, including BNP Paribas, Deutsche Bank, HSBC Holdings, Morgan Stanley and Royal Bank of Scotland have also refused to fund the project for environmental reasons.
The Adanis had acquired the rights to develop the Carmichael coal mine in Galilee Basin, Queensland, with estimated reserves of 7.8bn tonnes of coal. Subsequently, the estimate was raised to 11bn tonnes.
The Queensland state authorities have given in-principle approvals to the project even as a court hears an objection by an environmental group that has cited incalculable damage to the Great Barrier Reef if the project goes ahead.