Adani Enterprises Ltd. abandoned the 2020 mining start date at the Carmichael coal project in Queensland, Australia, after failing to meet a March deadline to secure up to A$3 billion in project financing, Bloomberg News reported March 28, citing a source.
First coal production and supply from the project is now expected in 2021.
Adani is said to be considering "unconventional" funding sources, including capital injections from other parts of its businesses, the source added.The company has also been mulling the potential sale of equity stakes in rail and port infrastructure, as it continues to seek up to A$3 billion from lenders.
The Carmichael project has hit multiple snags over the past few months, including a failure to secure funding from the Northern Australia Infrastructure Facility for the construction of a rail link and refusals by several banks to lend funds for the project.
Meanwhile, the company is reportedly seeking deals to supply a sizable chunk of its targeted 27.5 million tonnes of coal output from the first phase of Carmichael to markets in China, Vietnam and Taiwan in order to boost its revenue for the project.
Meanwhile, a spokesperson for Adani's Australian arm said that there has been no change in its marketing strategy, adding that the company remains "confident of securing finance" for the project.
"India will remain the key market for Carmichael coal. We are also targeting growth in demand for seaborne thermal coal from Southeast Asia and continued strong demand from North Asia," the spokesperson added.
Adani, however, did not respond to the news wire's questions about a delay in first production.