Abbot Point, through which coal from the Carmichael megamine will pass.
Abbot Point, through which coal from the Carmichael megamine will pass.

Adani’s $17.6m value loss of megamine

ADANI has made a $17.6 million writedown on its Carmichael megamine project in central Queensland in the latest sign of trouble for the Indian conglomerate.

The writedown was booked by its Australian unit Adani Mining in an Indian stockmarket filing in Mumbai.

Adani bought the lease from Peter Bond in 2010 for $500 million so a write down of that size shaves just a fraction off the value, but it will also be seen as another setback for the company which has been hit by a series of delays and legal challenges.

However, the company this week said it was still committed to the project and it had appointed well known executive Lucas Dow as a chief executive of its mining division.

The writedowns relate to the duplicate studies and redesign elements of the Carmichael project.

Additional labour costs have also contributed to the charge.

"During the quarter and year ended 31st March, 2018, the company's step-down subsidiary Adani Mining Pty Ltd, Australia has recognised ₹89.64 crores (10 million) as impairment of its mining project," the filing stated.

A write-down describes a reduction in the book value of an asset due to economic or fundamental changes in the asset.

The company also announced the reappointed Gautam S. Adani as an executive chairman

of the company for a further period of five years.

The company is expected to start the Carmichael mine in 2021, one year later than its original 2020 target.