Adani buys out contractor
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.
- On track at Collinsville Wednesday 22 March 2017
- Senators to decide Adani Wednesday 22 February 2017
- Key port upgrade Wednesday 15 February 2017
- Rio sells out of coal Wednesday 25 January 2017
- Adani Carmichael v Coal & Allied Wednesday 25 January 2017
- 2017 at a glance - Thermal Coal Wednesday 11 January 2017
- Miner wins job back Wednesday 04 January 2017
- Mixed signals for Adani Wednesday 21 December 2016
- Big news in small print Wednesday 07 December 2016
- 75 jobs go and houses given away Wednesday 07 December 2016