Premier Annastacia Palaszczuk and Adani's Jeyakumar Janakaraj back in April in 2016 before the premier vetoed the NAIF loan.
Premier Annastacia Palaszczuk and Adani's Jeyakumar Janakaraj back in April in 2016 before the premier vetoed the NAIF loan. Chris Lees

Adani split with major contractor for Carmichael Mine

INDIAN energy giant Adani has severed ties with its major contractor and is now committed to running the Carmichael Mine as owner and operator.

The controversial mine was supposed to be constructed by Downer Group after it was awarded the major contract believed to be about $2billion in June.

But Adani reviewed the project after Queensland Premier Annastacia Palaszczuk vetoed a Federal Government loan to build the railway.

"Following on from the NAIF veto and in line with its vision to achieve the lowest quartile cost of production by ensuring flexibility and efficiencies in the supply chain, Adani has decided to develop and operate the mine on an owner-operator basis," a statement released by the company today said.

"Adani remains committed to develop the Carmichael project and will ensure the highest level of standards and governance. This will not affect our commitment or the number of local jobs across Queensland."

Downer and Adani both claim the cancellation of Letter of Award relating to the mining contract was mutually agreeable.

Downer will provide transitional assistance to Adani until March 2018.



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