September 9, 2020 Read More →

Shunned by contractors, Adani starts its own railroad

ABC:

The Adani group has launched its own rail business to haul coal to its Queensland port, while avoiding any public mention of the parent company or the controversial Carmichael mine.

It follows years of pressure from anti-coal activists that has prompted a string of potential Adani contractors to walk away from the mining giant, increasing the cost of doing business.

Adani’s apparent move to go it alone on coal haulage will add $200 million to the upfront cost of its Queensland project, according to one energy analyst.

Former Citibank analyst Tim Buckley, now at the pro-renewables Institute for Energy Economics and Financial Analysis, said Adani’s decision drastically increased its capital costs, which other rail operators would have wanted to avoid.

Mr Buckley said locomotives and coal wagons for the mine’s first phase of 10MT a year would cost $200 million up front.

This would rise to half a billion dollars in the mine’s second phase of 27MT a year, he said.

The money it saved from not outsourcing would be offset by having to pay $50 million a year in interest, he said. 

[Josh Robertson]

More: Adani launches own rail company to haul coal from Carmichael mine

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