SYDNEY May 4 India's Adani Enterprises
has agreed a A$73 million ($54 million) steel supply
agreement with Australia's Arrium to be used in a rail
line for the proposed Carmichael coal mine, a source told
Reuters on Thursday.
The deal indicates Adani is moving ahead with plans for the
A$16 billion Carmichael coal project as it works to secure the
necessary finance, while the arrangement offers a potential
life-line to Arrium.
Under the terms of the deal, Arrium will supply more than
50,000 tonnes of steel to be used in a rail line linking Adani's
proposed coal mine with an export terminal on Australia's north
east coast, said a source with knowledge of the deal, who spoke
on condition of anonymity as he is not authorised to talk to the
The deal is subject to a full go-ahead for the mine.
Adani's Carmichael coal mine has been dogged by delays as
the company struggles to secure necessary capital and legal
challenges from environmental groups.
Adani plans to make a final investment decision in May or
June on the project, which targets annual output of 25 million
tonnes in its first phase, down from an original plan of 40
Arrium entered voluntary administration, a precursor to
bankruptcy, in April last year, , before a blackout in South
Australia damaged the company's factory.
By striking a deal with the troubled Arrium, Adani will also
please Australian policymakers, which have been keen to
safeguard the future of the steelmarket - a significant rural
($1 = 1.3463 Australian dollars)
(Reporting by Colin Packham; Editing by Richard Pullin)