The Adani Group’s investments in Australia are important for cementing the India-Australia economic partnership, says Australia's Minister for Resources Matthew Canavan. The Carmichael coal mine in Central Queensland, owned by the Adani Group, would begin production by 2021, he said.
Canavan is in India to encourage Indian businesses to invest in that country's coal sector. According to a report prepared by Australia’s Chief Economist, India will be the most appealing market for coal exports.
The Carmichael mine would initially produce 10 million tonnes of coal and can potentially generate 1.5 billion in revenue for the Australian government.
“I want to grow the relationship that we have between the two countries. Coking coal is already our largest export to India. It is about half of our exports to India. I also think there are opportunities in thermal coal. We will never get anywhere near supplying India’s needs for power generation coal; India already produces about 3 times what we produce as a nation, but we do have high quality coal. We have a niche high energy content coal that can supplement other countries' domestic production as we do with China,” he told CNBC-TV18.
Adani is the largest Indian investor in Australia. “It has had delays, there has been some controversy about it, but there is always going to be some controversy when you seek to open up a new coal base. Yes, there are those who are opposed to coal production in Australia, but we are a democracy. Just like your country and we had elections a few months ago and people massively supported the Adani project as it will create jobs for Australia. So, it is positive news for the two countries,” he added.