3 DEC, 2012, MITUL THAKKAR, ET BUREAU
MUNDRA I KUTCH: The Adani Group's Carmichael coal block in Australia holds an estimated 10 billion tonne of reserves and the company plans to start commercial production from the mine by early 2016, its chairman has said. On Sunday, the $8-billion diversified group announced completion of its coal mining exploration programme in Australia.
"We are going to be the largest Indian group in coal mining. In the first phase, Carmichael mine will produce 60 million tonne and almost 60% of the same will come to India," Gautam Adani told ET. "The group is investing close to $10 billion in port, railway and mining projects in Australia."
Adani has already invested $3 billion in the integrated project and is expected to pump in another $7 billion over the next few years. The development of the mine alone is expected to cost $4.5 billion. The group is considering issuing global bonds worth $1.5 billion to fund the integrated project, Adani said. The group's flagship entity, Adani Enterprise, is India's largest coal trader with imports aggregating 42 million tonne.
Adani said the group's coal assets in Australia and Indonesia would help secure fuel for its Indian power firm Adani Power, which will have an installed capacity of 10,000 mw by mid 2013. Adani Power is targeting 20,000-mw thermal power generation capacity by 2020, for which it is expected to need close to 100 million tonne of coal.
"The power sector is passing through a difficult period but we are hopeful of Adani Power doing better from next fiscal," Adani said, adding, "We are increasing our stake to 75% in Adani Power and it reflects our confidence in the company."
Meanwhile, the group has begun restructuring its finances to reduce debt. According to people with knowledge of the matter, promoters are expected to divest 15%-20% stake in Adani Port and SEZ Ltd (APSEZ) in the coming months. Adani confirmed that APSEZ will soon re-apply to seek permission for 1,840 hectare SEZ in Mundra.
"The government withdrew permission to the SEZ due to a technical mistake on our part. We are in the process of approaching the commerce ministry with a fresh application,"Adani said. The Adani group chairman was talking on the sidelines of the visit of Australian Minister for Resources & Energy Martin Ferguson and Queensland Premier Campbell Newman to Mundra in Kutch district.
Ferguson said the Adani mining venture would get necessary approvals for commercial production by June 2013. "India lacks energy resources and Australia needs investments and employment," Ferguson said. Harsh Mishra, the CEO of the group's Australian entity, Adani Australia, said, "We are anticipating recovery of 80%-90% of reserves from the Carmichael mine. There is downturn in coal market and we are hopeful of witnessing rise in demands from 2016. The present scenario and our presence in the value chain will make us the lowest cost producer of coal."
The Group's project is expected to create up to 5,000 jobs during the construction stage and 4,000 jobs once mining begins. It claims to have completed basic engineering for its proposed 400-km railway line connecting the Carmichael mine to the Abbot Point port's coal terminal.
MUNDRA I KUTCH: The Adani Group's Carmichael coal block in Australia holds an estimated 10 billion tonne of reserves and the company plans to start commercial production from the mine by early 2016, its chairman has said. On Sunday, the $8-billion diversified group announced completion of its coal mining exploration programme in Australia.
"We are going to be the largest Indian group in coal mining. In the first phase, Carmichael mine will produce 60 million tonne and almost 60% of the same will come to India," Gautam Adani told ET. "The group is investing close to $10 billion in port, railway and mining projects in Australia."
Adani has already invested $3 billion in the integrated project and is expected to pump in another $7 billion over the next few years. The development of the mine alone is expected to cost $4.5 billion. The group is considering issuing global bonds worth $1.5 billion to fund the integrated project, Adani said. The group's flagship entity, Adani Enterprise, is India's largest coal trader with imports aggregating 42 million tonne.
Adani said the group's coal assets in Australia and Indonesia would help secure fuel for its Indian power firm Adani Power, which will have an installed capacity of 10,000 mw by mid 2013. Adani Power is targeting 20,000-mw thermal power generation capacity by 2020, for which it is expected to need close to 100 million tonne of coal.
"The power sector is passing through a difficult period but we are hopeful of Adani Power doing better from next fiscal," Adani said, adding, "We are increasing our stake to 75% in Adani Power and it reflects our confidence in the company."
Meanwhile, the group has begun restructuring its finances to reduce debt. According to people with knowledge of the matter, promoters are expected to divest 15%-20% stake in Adani Port and SEZ Ltd (APSEZ) in the coming months. Adani confirmed that APSEZ will soon re-apply to seek permission for 1,840 hectare SEZ in Mundra.
"The government withdrew permission to the SEZ due to a technical mistake on our part. We are in the process of approaching the commerce ministry with a fresh application,"Adani said. The Adani group chairman was talking on the sidelines of the visit of Australian Minister for Resources & Energy Martin Ferguson and Queensland Premier Campbell Newman to Mundra in Kutch district.
Ferguson said the Adani mining venture would get necessary approvals for commercial production by June 2013. "India lacks energy resources and Australia needs investments and employment," Ferguson said. Harsh Mishra, the CEO of the group's Australian entity, Adani Australia, said, "We are anticipating recovery of 80%-90% of reserves from the Carmichael mine. There is downturn in coal market and we are hopeful of witnessing rise in demands from 2016. The present scenario and our presence in the value chain will make us the lowest cost producer of coal."
The Group's project is expected to create up to 5,000 jobs during the construction stage and 4,000 jobs once mining begins. It claims to have completed basic engineering for its proposed 400-km railway line connecting the Carmichael mine to the Abbot Point port's coal terminal.
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