Adani suspends Australia project's engineering work over delay in approvals

Adani Enterprises said on Monday it has suspended engineering work at $16.5-billion Carmichael mine in Australia on account of delay in approvals.

In a BSE filing, the firm said that for the past 6-12 months, Adani has maintained a level of investments, jobs and sub-contractor engagement for its mine, rail and port projects in Australia in anticipation of finalising approvals and decisions.

The project budget was based, understandably, on the anticipated approval timelines and milestones, it added. As a result of changes to a range of approvals over that time, it's necessary to synchronise our budget, project timelines and spending to meet those changes.

"Accordingly, we have suspended detail engineering work. However, the remaining activities related to the projects are still continuing," the filing said.

The Carmichael coal, railway and port project includes building Australia's largest thermal coal mine in the north Galilee Basin in Central Queensland, linked by a new rail line to a new terminal at Abbot Point Port.

Covering 280 sq km, the Carmichael mine would use a new 380-km rail line to transfer up to 60 million tonnes of coal a year to overseas markets, including India.

The combined mine, rail and port operations will provide over 10,000 direct and indirect jobs and supply opportunities for local businesses, the company's website showed.

The project is facing legal challenges from indigenous landholders and conservation groups, which are likely to push back state government decisions on mining lease and environmental approvals until the end of the year at least. The Adani Enterprises stock fell 3.44 per cent on the BSE.