Debt, not coal, earns $ 388 million in profit for Adani
Controversial coal miner Adani Mining posted an annual profit of $ 388.4 million in Australia without selling as much as a bucket of coal, thanks to a stronger Australian dollar against the US greenback.
In its financial accounts on file with the corporate regulator, Adani Mining said it generated revenue of just $ 8 million – most of it from bank interest – but avoided a loss due to a one-time foreign exchange gain of $ 425 million. dollars for the year ending March 31. , 2021.
The company reported a loss of $ 283 million in 2020.
The windfall was generated by favorable currency movements on $ 2 billion in loans received from its Indian parent company, the Adani Group, which is financing the Carmichael coal mine in Queensland and the construction of related infrastructure, including the railroad needed to ship the coal to Port.
Adani’s Australian operations were forced to resort to a heavily indebted structure after failing to attract local financing for the Carmichael mine.
“The foreign exchange gain results from converting foreign currency denominated transactions (primarily US dollar denominated debt) into Australian dollars,” the company said in response to questions about its results.
Adani’s subsidiary relies on the financial support of its parent group to remain viable. According to his accounts, loans to be repaid within 12 months exceeded short-term funds by $ 2.28 billion. All of this is payable to its Indian parent company which has undertaken not to seek reimbursement.
The Carmichael Project has faced significant opposition over the significant contribution of coal to global warming, the potential environmental damage from the mine, and fears that it will further stimulate fossil fuel extraction in the Galilee Basin.
Adani Mining, which operates in Australia as Bravus Mining and Resources, received final approval for the project in 2019 and reached a milestone in June when it found coal at the mine site.