Adani Enterprises shares rallied as much as 2.9 percent in morning on Thursday after the company finally decided to finance its Carmichael mine project through its own resources. The project was stacked up both environmentally and financially.
"Adani Mining's Carmichael mine and rail project will be 100 percent financed through the Adani Group's resources," Adani Mining CEO Lucas Dow announced in Central Queensland.
Today's announcement follows eight years of planning, securing approvals and successfully contesting legal challenges from anti-mining activists.
"We have worked tirelessly to clear the required hurdles," Dow said.
"Given we meet the same environmental standards and operate under the same regulations as other miners, we expect that Adani Mining will be treated no differently than any other Queensland mining company," he added.
Dow said construction and operation of the mine will now begin. "Our work in recent months has culminated in Adani Group's approval of the revised project plan that de-risks the initial stage of the Carmichael mine and rail project by adopting a narrow gauge rail solution combined with a reduced ramp up volume for the mine."
This means the company has minimised its execution risk and initial capital outlay, he said, adding the sharpening of the mine plan has kept operating costs to a minimum and ensures the project remains within the first quartile of the global cost curve.
"All coal produced in the initial ramp up phase will be consumed by the Adani Group's captive requirements," Dow said.
The announcement of funding to Australia's mining project was made to community leaders, mining industry contractors and suppliers at the Bowen Basin Mining Club luncheon in Mackay, regional Queensland and also followed recent changes to simplify construction and reduce the initial capital requirements for the Carmichael project.
This is an important milestone that will help create new opportunities for trade and investment between Australia and India, Adani Enterprises said.
At 09:55 hours IST, the stock was quoting at Rs 159.55, up Rs 1.70, or 1.08 percent on the BSE.
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