Indian conglomerate Adani Enterprises is in talks with China Machinery Engineering Corp (CMEC) for the financing of a controversial coal mine project in Australia, two sources with knowledge of the situation said on Thursday.
Adani is seeking A$2 billion ($1.54 billion) in outside financing for its proposed A$4 billion Carmichael coal mine in the state of Queensland. However, Australian and overseas banks have baulked at granting loans for the project which environmentalists oppose because of concerns over the size of the mine and the potential for damage to the Great Barrier Reef.
CMEC is an engineering contractor that is majority-owned by Chinese state-owned enterprise (SOE) China National Machinery Industry Corp Ltd, or Sinomach.
CMEC would provide financing through the China Export-Import Bank or China Construction Bank, or both, in return for winning the procurement and engineering contracts, for the project, according to a report issued earlier on Thursday by the Institute for Energy Economics and Financial Analysis, (IEEFA) an outspoken opponent of the project, citing unidentified sources. Read More…
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