Adani buys out contractor
INDIAN miner tightens its grip on key Galilee infrastructure.
Wednesday 21 September 2016
Galilee hopeful Adani will take on the day to day operations of the Abbot Point Coal Terminal (APCT) following a complex transaction that has effectively seen them buy the ports management rights from Glencore.
Back in 2011 Adani purchased the entire APCT on a 99-year lease from the state government for a staggering $1.829 billion. However, actual port management has been contracted to Abbot Point Bulk Coal Pty Ltd (APB) - a subsidiary of Glencore. Under this deal, Adani has purchased APB and will become the owner-operator.
It is not a surprising move given Adani owns the Mundra Port Company - India’s largest private port operator.
The APCT is a critical piece of the infrastructure required to open up the Galilee Basin and in particular, Adani’s proposed Carmicheal mine North West of Clermont. However, it is already a functioning multi-use port facility handling coal from mines in the Northern Bowen Basin like Glencore’s Collinsville and Newlands operations.
Adani Australia CEO Jeyakumar Janakaraj said the purchase is further evidence of their commitment to Queensland.
"Today's transition is a key milestone in our well-advanced plans for Abbot Point, and is yet another demonstration of Adani's commitment to building a long-term future with Queensland,” he said.
“This is an exciting and important step forward for employees, their families, the Bowen and surrounding communities and for Queensland, and reflects the vital role that Abbot Point plays in the company’s plans to build a long term future in this state.”
Adani has warned there will be redundancies among the current management team at the port but says disruptions to other employees and day to day operations will be minimal.