Adani may have to spend more than half of the $2 billion slated for its Queensland mega-coal mine on rail lines alone if it is to get its shipments to ports.
On Thursday, Adani announced it would self-finance a $2 billion scaled down Carmichael mine in after it failed to receive funding from Australian banks or government sources.
It had originally priced the project at $US16 billion, with funding into a rail line connecting it to the Abbot Point Coal Terminal, to ensure the project did not remain stranded in Queensland’s underdeveloped Surat Basin.
Its new proposal now allows it to fund the mine from the global parent business, with a rail line connecting to heavy haulage firm Aurizon's rail network.
The Grattan Institute's Marion Terrill said, "this project is contingent on funding the rail line".