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Adani scraps Downer deal after loan veto

Adani has scrapped a $2 billion agreement to outsource the operation of its controversial Queensland coal mine after the state government killed off a taxpayer-funded loan. The Indian miner says it will now develop and operate the Carmichael project on an owner-operator basis after reaching an agreement with contractor Downer EDI to abandon the deal, which was reportedly worth around $2 billion. Adani has scrapped a $2 billion agreement to outsource the operation of its Queensland coal mine. Adani said the decision was about lowering production costs and was made after the Palaszczuk government blocked a $1 billion loan to the Indian miner from the federal Northern Australia Infrastructure Fund (NAIF). "Following on from the NAIF veto last week, and in line with its vision to achieve the lowest quartile cost of production by ensuring flexibility and efficiencies in the supply chain, Adani has decided to develop and operate the mine on an owner-operator basis," the miner said in a statement on Monday. It said Downer had agreed to end its involvement but would provide transitional assistance until the end of March. "Adani remains committed to develop the Carmichael project and will ensure the highest level of standards and governance," Adani said. "This will not affect our commitment or the number of local jobs across Queensland. This Mortgage brokers Oak Laurel Nundah, 0430 129 662 is simply a change in management structure and ensures that the mine will ultimately be run out of our Adani Australia offices in Townsville."

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