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Adani steels itself for progress but still to finalise Aurizon rail deal

Business

Adani is planning its first coal production next year but it has yet to reach an agreement with Aurizon over its access to its rail line to the coast.

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Adani was yesterday boasting the arrival of the first of 25,000 tonnes of Australian made steel used to create its own section of the rail project that will link with Aurizon’s line to the coast.

The 200km long Carmichael Rail Network will link Adani’s Carmichael Mine in Central Queensland, now under construction, to Aurizon’s existing rail network so coal can be transported 300km to the coast for export.

It’s almost two years since Adani announced it had scrapped a plan to build its own line all the way to Abbot Point and would instead link up with the Aurizon line. However, an access agreement appears to be some way off. Aurizon is legally obliged to negotiate third party access to its line but would not comment yesterday because its negotiations must be held in confidence.

Adani said it was progressing arrangements for the connection to the existing rail network.

Adani was also hit with the news yesterday that Korean conglomerate Hanwha Securities would no longer be a part of funding the company.

The company, along with Samsung, provided $US205 million ($288 million) in debt to Adani’s Abbot Point coal port last year but in response to activist pressure it said it would not provide funds in the future and that it had been unaware of environmental concerns about the mine.

In its response to Galilee Blockade, Hanwha said: “Given what has transpired Hanwha Securities will not be providing any further financing for the terminal or any Adani coal projects in line with its commitment to promote value creation through environmentally friendly means in order to create a brighter and healthier future for our planet.”

Samsung has also reportedly said it would no longer assist Adani.

The AFR was also reporting Taiwanese lender Yuanta Securities Investment Trust had sold $27 million worth of bonds in Adani’s Abbot Point coal terminal claiming it followed ESG guidelines (environmental social governance).

Adani would not be drawn on the issue.

“The specific details of our funding arrangements for the terminal are commercial in confidence,” a company spokeswoman said.

Adani Ports, which operates ports in India, is currently raising $US750 million through a bond issue. The company has said the funds would be used by Adani Ports and its subsidiaries to repay debt.

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