Adani seeks partners for $2bn Australian coal rail project

10 June 2012 (Last Updated June 10th, 2012 18:30)

Adani is seeking potential partners to help finance a $2bn coal rail line from Galilee Basin, Australia, to the Pacific Ocean, after receiving state authorisation for the proposed route.

Adani is seeking potential partners to help finance a $2bn coal rail line from Galilee Basin, Australia, to the Pacific Ocean, after receiving state authorisation for the proposed route.

Adani Group Australia chief executive Harsh Mishra said: "We are eager to cooperate with third parties in such development but also keep open the option of going it alone as deemed in our best business interests."

Earlier this week, the Queensland government approved the proposal to develop two new rail corridors to serve the state's coal mines in the Galilee and Bowen basins.

Adani, who declined to name any potential partners, said that the governmental support is crucial for its $10bn project.

Australian coal rail operator QR National and Adani have planned projects along the same corridor. Both companies are expected to team up to transport coal to an existing QR National rail line that could haul coal to the port of Hay Point or Abbot Point further north.

Adani had previously unveiled a proposal to invest $6bn, which would mainly be spent on developing the Adani Abbott Point Coal Terminal and the Galilee Basin coal mines, as well as the construction of a 500km rail line connecting coal mines and the port.

The company's Australian mining unit, Adani Mining, has begun its exploration in the Galilee Basin, which is expected to start production by January 2015.

The east-west extension is currently being developed by QR National and Adani and offers a staged development of mine, rail and port capacity for the Galilee Basin in the short term.

The government said that it will support an expansion of capacity on the existing QRN alignment north to Abbot Point and also the development of coal-line standard for the existing rail line from Alpha to Emerald.