Adani Enterprises’ tanks post decision to defer investment in Australian project

NEW DELHI: Shares of Adani Group’s flagship company Adani Enterprises’ shares dropped as much as 9 per cent in the early trade on Tuesday.

The company on Monday had decided to defer its final investment decision on its Australian Carmichael coal project, as the Queensland state government did not sign off on a royalty deal for the mine.

The stock of the company closed at Rs 113.15, down 6.65 per cent and had touched the day’s low of Rs 109.65.

Adani Enterprises was supposed to make a final investment decision on the 25 million tonnes a year coal mine, which it had scaled down from 40 million tonnes a year.

The Queensland’s cabinet was yet to discuss on the royalty deal and the Queensland Premier Anastasia Palazsczuk told Reuters, “at the end of the day, it's all about jobs, and that's what Queenslanders want.”

In April 2017, Matt Canavan, Australian coal minister, had supported the project and hadn’t ruled out the option to give Adani Enterprises a loan of A$1 billion for the same, as it would create jobs, the Reuters report added. The project would help generate 16,000 jobs.