Adani parts ways with mining services firm

Adani in a statement on Monday revealed that both parties had cancelled a conditional $2.6 billion contract as part of Adani’s cost-cutting drive following last week’s decision by the Queensland state government to veto an A$900 million federal government loan to Adani.

The split comes after Australian company Downer became the target of a nationwide activist campaign pressuring it to quit the Carmichael project in central Queensland, abc.net.au reported. 

The move raises further questions about the fate of the massive project, with Downer one of only two mine contractors - along with Thiess - considered capable of handling an operation producing up to 60 million tonnes of coal a year.

It is the latest in a long series of project hiccups for the Carmichael mine, including the veto of Adani’s application for a Northern Australia Infrastructure Facility (NAIF) loan last week, and its so far unsuccessful attempts to raise finance in China. 

Adani said in a statement it remained committed to the project and the split with Downer was “simply a change in management structure”. 

“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 statement said.