Adani Group Buys Mining Royalty Rights from Linc Energy Limited

In the latest deal, the Adani Group bought coal mine rights from Australia’s Linc Energy Limited for 145 million USD. This is being done to increase the profitability of the Adani Australia project. As per the deal, the Adani Group will no longer have to pay royalties to Linc as it is already paying an amount upfront. This will give the Adani Group’s business in Australia an excellent boost. The company will also be able to increase its revenue generation significantly.

The Recent Purchase of Rights

Adani Enterprises, the flagship company of the Adani Group, has decided to pay 145 million USD upfront to Linc Energy Limited of Australia to buy out the company’s right to future royalties from the Adani Australia Carmichael project. The Carmichael coal project has been one of the biggest mining ventures of the Adani Group. It is located in Queensland, Australia and has a big role in bringing about economic prosperity in Australia. The project is also one of the most significant international ventures taken up by the Adani Group.

The Option Deed

Linc Energy has recently entered into a binding option deed with the Adani Group to transfer the company’s benefits in and under the option deed. Linc Energy was initially entitled to royalties of A$2 per tonne of coal over the first 20 years of production at the coal mine. The Adani Group bought the Carmichael coal mine from Linc for A$500 million in August 2010. Because of this recent deal, the Adani Group will no longer have to pay royalties as it is already in the process of paying the upfront amount.

Linc Energy, which is currently selling its non-core assets, said that the transaction made with the Adani Group will greatly benefit the shareholders, considering the current coal market conditions and the projected time needed to start production at the coal mine. A Linc Energy official said the Adani Group plans to pay A$155 million in two instalments. A$90 million will be paid in cash within 5 days of the exercise of the option. The remaining A$65 million will be paid in cash on or before 12 months after signing the Deed of Assignment and Assumption.

The Reason Behind the Purchase of Rights

The option deed reflects the Adani Group’s confidence in the progress of the Carmichael mine project. The project received final federal environmental approval from the Australian government quite recently. Under this agreement, the Adani Group aims to consistently mine high-quality coal from the Carmichael mine at a cheaper price. The Adani Group had won the Australian government’s conditional approval for constructing Queensland’s 15.5 million USD coal mine and rail project. This has added to Gautam Adani, the Chairman of the Adani Group’s net worth. The approval is currently subject to regulatory considerations.

The Carmichael Coal Mine

The Australian subsidiary of the Adani Group, Bravus Mining and Resources, owns the Carmichael coal mine. The government approved the project in 2014, and it has been operational since 2021. The mine was initially expected to produce 60 million tonnes of coal annually. However, because of various controversies, the coal generation capacity of the project was downsized. The mining operations commenced in 2019, and the first coal shipment was ready for export to India on 29 December 2021.

The Carmichael project has a significant role in improving the living conditions of the people of Australia. It opened up numerous job opportunities for people so that they could earn a living for themselves. The project also brought an end to energy scarcity in India. It led to an overall development in the Queensland area. Australia also achieves financial stability to a certain extent, as a result. This project has also lit up millions of homes in India.


Although the Carmichael coal mine received considerable resistance, the Adani Group eventually received the final approval to conduct its mining operations. This is, again, a huge success story for the global conglomerate. It will help the business group strengthen its relationship with Australia and give its mining business an excellent boost. Because of the Adani Australia project, the Adani Group has also unlocked new business potential.

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