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Construction of Adani's Carmichael coal project in QLD set to go underway


Posted by Monica Gameng

Development of Adani Group’s Carmichael coal mine and rail infrastructure is set to go underway soon, with the Indian mining company announcing that it will fully fund the project itself.

“We have finance and we are ready to start.

“We will now begin developing a smaller open-cut mine comparable to many other Queensland coal mines and will ramp up production over time,” Adani Mining SEO Lucas Dow said in a statement.

The Carmichael coal project - located in central Queensland’s Galilee Basin, west of Mackay - has been scaled back to simplify construction as well as reduce the initial capital cost needed to develop the components of the project.

The reduced size of the project is now expected to produce an initial 10-Mtpa before it ramps up to 27.5-Mtpa within a period of 10 years.

“Our work in recent months has culminated in Adani Group’s approval of the revised project plan that de-risk the initial stage of the Carmichael mine and rail project by adopting a narrow gauge rail solution combined with a reduced ramp-up volume for the mine.

“This means we’ve minimised our execution risk and initial capital outlay. The sharpening of the mine plan has kept operating cost to a minimum and ensures the project remains within the first quartile of the global cost curve,” Mr Dow said.

The smaller Carmichael project is now expected to cost almost $2 billion - a large drop from its initial $16.5 billion price tag. The project is also expected to create approximately 1,500 jobs during the construction and “ramp-up” stages and thousands of indirect jobs.

Mr Dow added: “We will now deliver the jobs and business opportunities we have promised for North Queensland and Central Queensland, all without requiring a cent of Australian taxpayer dollars.”

“In addition to providing these jobs in regional Queensland, our Carmichael coal will also provide a power source to improve living standards in developing countries,” Mr Dow said.

Minerals Council of Australia has welcomed the news of the mine moving forward towards construction, stating that the project will be providing an economic boost to the region.

“The Queensland and Australian economies will benefit from thousands of new regional jobs and long-term investment in the mine and rail infrastructure,” Mineral Council of Australia CEO Tania Constable said in a statement.

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Source: Australian Mining; The Sydney Morning Herald; ABC News; The Australian; Mackay Daily Mercury

Monica Gameng

Monica Gameng

As PlantMiner's Marketing Assistant since 2015, Monica is responsible for researching and sharing new and progressing projects within the construction and mining sectors in Australia. It's no surprise that Monica has her finger on the pulse of Australian major projects given she has produced more than 1000 posts. She truly is an industry expert. Monica's passion for educating and inspiring readers saw the PlantMiner blog recognised by Feedspot as one of the Best Australian Construction Blogs in 2018 and 2019. PlantMiner is Australia's largest online construction marketplace. Sign up as a vendor to find and engage with civil and commercial contractors across Australia. Alternatively, if you're looking for plant and equipment you can compare equipment and subcontractor quotes from vendors near you in just a few steps.