Adani Mining
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Adani Mining is a subsidiary of the Adani Group, a major Indian power, infrastructure and transport company.
Contents
Coal interests
On its website the Adanai Group states that it is "already the largest coal importer of India" and is diversifying into "buying coal mines" and entering into coal mining businesses.[1]
On its website the company states that "Adani Mining operations today are spread in three countries – India, Indonesia and Australia. Apart from opening a new area of business, the mining operations in coal have ensured fuel security for the various thermal power projects currently being executed by Adani Power Limited. Both the mining ventures abroad are not merely confined to mining but are infrastructure development projects that entail activities like laying of rail roads and even port development."[1]
Australia
In August 2010 Adani Mining bought Linc Energy's Galilee basin coal tenement in Queensland for $A500 million in cash plus a $2 per tonne royalty (indexed to the Consumer Price Index) for the first twenty years of coal production. The company refers to the project as the Carmichael Coal Project. According to Linc, the Galilee tenement an indicated resource of 500 million tonnes and a further 7.3 billion tonnes as an inferred resources. The company claims that the "tenement is capable of producing up to 60 million tonnes of coal per year once fully operational."[2]
India
Adani Enterprises has entered into a joint venture agreement with RRVUNL and formed a company called Parsa Kente Collieries with holding a 74% equity interest for mining coal from the Parsa East and Kante Basan coal blocks in Chhattisgarh. On its website ADanai states that it has also entered into a 30-year agreement to supply coal from the mines for RRVUNL's power stations commencing in June 2011. Adani Mining has a coal mining services agreement for "activities obtaining approvals (including approval of mining plan), acquisition of land, setting up washery and construction of railway siding at the mine."[3]
The company also states that Adani Enterprises "received a letter of intent (“LoI”) dated May 20, 2009 from Mahaguj Collieries Limited, for the development of the Machhakata coal block in Orissa. This entails the mining of coal from the coal block and supplying the designated power plants of Maharashtra Power Generation Company Limited and the Gujarat State Electricity Corporation Limited."[3]
The company also states that it has a letter of agreement dated October 20, 2009 from Chhattisgarh State Power Generation Company Limited "regarding selection as joint venture partner for development, mining and transportation of coal from Parsa coal block. In terms of the Chhattisgarh LOA, CSPGCL will hold 51% cashless equity in the joint venture company formed and the Company will hold 49% ... The coal from the mine will be utilized by CSPGCL for its own thermal power project."[3]
Adani Enterprises is bringing in its first shipment of 57,000 tonnes of coking coal from Canada to Dhamra, an act due to increasing demand of the mineral from steel companies.[4]
Indonesia
Adani has coal mining rights in Indonesia.[5]
Articles and Resources
Sources
- ↑ 1.0 1.1 Adani Group, "Energy", Adani Group website, accessed July 2011.
- ↑ Linc Energy, "Linc Sella Galilee Coal Tenement for $3.0 billion", Media Release, August 3, 2010.
- ↑ 3.0 3.1 3.2 Adani Group, "Coal mining", Adani Group website, accessed July 2011.
- ↑ ET Bureau, "Adani Enterprises enters Coking Coal trade", The Economic Times, accessed January 10, 2012.
- ↑ Jim Yardley and Vikas Bajaj, "Billionaires’ Rise Aids India, and the Favor Is Returned" NY Times, July 26, 2011.
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