Indian Firm to Begin Australia's Largest Coal Development: Australian Prime Minister

New Delhi: Keen on expanding business, Australian Prime Minister Tony Abott on Friday said an Indian conglomerate was all set to embark on Australia's largest ever coal development to illuminate lives of 100 million Indians.

"If all goes to plan, next year, an Indian company will begin Australia's largest ever coal development which will light the lives of 100 million Indians for the next half century," Mr Abott said while addressing Indian industry leaders during a luncheon meeting organised by industry chambers including CII and Ficci.

He, however, did not mention the name. It may be noted that the Australian government in July had cleared the proposed $15-billion Carmichael coal mine project of the Indian conglomerate Adani Mining in the Galilee Basin in central Queensland.

The approval to the project that is expected to provide electricity for up to 100 million people in India was announced by Australian Environment Minister Greg Hunt, who had approved the Carmichael Coal Mine and Rail Infrastructure project subject to 36 strict conditions.

Mr Abott, who is on a two-day official visit here, said, "Top-quality Australian coal, for instance, will be available to power Indian households and businesses at the lowest price to consumers."

He said "Australia is open for business", adding, "Over the past half century, Australian coal, iron ore and gas has powered the economic transformations of Japan, Korea and China."

Mr Abott exuded confidence that the trade relations will be strengthened between both the countries and enunciated the measures by Australia to boost investments like scrapping of carbon and mining taxes.

Adani Group chairman Gautam Adani was also present on the occasion.

The move by Australian Parliament in July to repeal the carbon tax in the country is likely to help coal exporting companies in delivering cost effective and high quality fuel to Indian markets, according to Adani Mining, a wholly-owned subsidiary of the Adani Group.

The repealing of the carbon tax in Australia will lower costs for Indian firms such as Adani and GVK exporting from the country, Adani Mining had said.

Last month, Adani Mining had won state approval to build a 300-km rail line for its Carmichael project that will enable transportation of 100 million tonnes of coal a year after construction.

It is estimated the rail line will take about two years to build and will pump in up to $790 million into the Mackay region and over $900 million into the state economy during its construction phase.

Adani Enterprises recently also inked a pact to buy out Linc Energy's royalty rights from the Carmichael coal project for 155 million Australian dollars.