Adani Enterprises to self-finance Carmichael mine project; stock rises 8%

The stock moved 8% higher at Rs 170 on BSE on back of heavy volumes after the company said it will fund the entire cost of its controversial Queensland coal mine and rail project in Australia.

Shares of Adani Enterprises have moved higher by 8% to Rs 170 on BSE on back of heavy volumes after the company said it will fund the entire cost of its controversial Queensland coal mine and rail project in Australia.

“Adani Mining's Carmichael mine and rail project will be 100% financed through the Adani Group's resources, Adani Mining CEO Lucas Dow announced in Central Queensland today,” Adani Enterprises said in a press release.

Mr. 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," Mr. Dow said.

The company statement said the funding decision follows recent changes to simplify construction and reduce the initial capital requirements for the project.

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, it added.

At 02:19 pm, Adani Enterprises was trading 7% higher at Rs 169 on BSE, as compared to a 1.5% rise in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined 9.1 million equity shares changed hands on the NSE and BSE so far.