Adani and Downer part ways after Queensland government loan veto

Adani  has cancelled a $2 billion agreement with Downer to outsource the operation of its Carmichael mine after the Palaszczuk government vetoed a billion dollar loan from the Northern Australia Infrastructure Fund for the company’s Galilee Basin rail project.

After reaching agreement with Downer to abandon the deal Adani will now operate the Carmichael project as an owner-operator.

Adani reportedly said the decision was about lowering production costs and was made after the Palaszczuk government loan veto. The decision is not expected to affect the company’s commitment to the number of local jobs across Queensland.  It is envisaged that the mine will ultimately be run out of the Adani Australia offices in Townsville.