Adani Mining, the Australian subsidiary of Adani Enterprises, and the State Bank of India (SBI) Monday signed an MoU for a $1 billion credit line for a coal mine project in Queensland.
The company not only got the necessary approvals for its $7 billion coal mine project from Queensland state but also secured a commitment from the government to hold short-term, minority stakes in rail and port infrastructure needed to unlock massive coal reserves in the untapped Galilee Basin.
The Adani group said: "The MoU provides for a credit facility of up to $1 billion subject to the detailed assessment of the company's mine project at Carmichael, near Clermont in Western Queensland."
Adani's Australian operations are headquartered in Brisbane and the company has made building a long-term future with the state of Queensland a key focus of its Australian arm.
According to the statement, the mine has a certified coal resource in excess of 11 billion tonnes and is the centrepiece of Adani's integrated mine, rail and port project in Queensland.
"The MoU with SBI is a significant milestone in the development of our Carmichael mine," the group said in a statement.
"It is a unique asset that lies at the heart of our investment in Queensland and Australia, and aligns perfectly with our clear vision for delivering energy security in the Indian market," Adani Group chairman and founder Gautam Adani was quoted as saying.
Adani Mining CEO and country head Jeyakumar Janakaraj said: "This project, which is evincing interest from private and public financiers in India and abroad, will deliver 10,000 jobs and $22 billion in taxes and royalties to Queensland in addition to helping Adani deliver cost-efficient power in the Indian market."
