MELBOURNE, Dec 18 (Reuters) - India's Adani said on Monday it had canceled a contract with Downer EDI Ltd DOW.AX to develop and run its Carmichael coal mine in Australia after failing to secure a government loan for the A$16.5 billion ($13 billion) project.
Adani and Downer said they had agreed to cancel all letters of award for mine services and related infrastructure, after the premier of the state of Queensland said she would veto a federal government loan for the Carmichael mine's proposed rail line. on from the NAIF (Northern Australia Infrastructure Facility) veto last week, and in line with its vision to achieve the lowest quartile cost of production by ensuring flexibility and efficiencies in the supply chain, Adani has decided to develop and operate the mine on an owner operator basis," Adani Australia said in a statement.
The company said it remained committed to the long-delayed project, which has yet to line up financing.
($1 = 1.3082 Australian dollars)