Coal news and updates

Adani’s Carmichael coal mine a step closer

THE first of more than 4000 jobs and $7 billion in investment will begin flowing to Queensland within months when Indian Company Adani starts construction on the Carmichael megamine in Central Queensland.

Adani Australian boss Jeyakumar Janakaraj said the company was ready to get the first boots on the ground as soon as federal approval was granted for the dredging program and its board of directors give the green light.

The more than $7 billion it needs will not be an issue, according to Mr Janakaraj.

This is the first time the company has given a start date for development after five years of pushing through the approval process at Carmichael and Abbot Point.

“We have placed orders, we are just waiting to give the notice to proceed for people to hit the ground,’’ Mr Janakaraj said.

“We will start early works in line with those dredging approvals. We are working with the Government and we think we’ll get them on time because that is critical. As soon as we get dredging approval a financial investment decision is there.’’

He said “absolutely, work on the ground’’ will start soon after that.

“We are not talking after two years or long term. It’s near term and it’s a good opportunity to capitalise.’’

The early construction works of what will be Australia’s biggest coal mine will generate about 400 jobs, but 4150 jobs are predicted in construction and another 3800 when the mine starts operating in 2017.

Downer has already been awarded the $2 billion construction contract if Adani commits.

The jobs would effectively compensate for almost half the 10,000 jobs lost in the coal industry since the boom ended, but almost all the jobs at Carmichael mine will be fly-in, fly-out because the closest town, Clermont, is 160km away.

Mr Janakaraj said a large area of central and northern Queensland would get an economic benefit, and almost all the workers would be sourced from Queensland where unemployment has been rising. None of the jobs would go to foreign workers.

Both sides of politics have supported the project and industry sources expect it to pass regulatory hurdles.

he next step will be for the Federal Government signing off on a plan to dump the dredging spoil at Abbot Point on land. This is expected to happen by July.

The State Government will then be required to grant a mining lease, which is currently being held up by a Land Court case brought by environmentalists. That case is expected to run another four weeks.

Premier Annastacia Palaszczuk said the Government had already shown willingness to work with the proponents because it meant more jobs for Queenslanders.

“We’ve always said any development needs to be environmentally responsible and that it has to stack up commercially on its own two feet,” she said.

“This is an encouraging sign, but there are still a number of regulatory checks and balances that must be met and processes that must be completed before the project gains full approval.”

Regional Queensland will get a massive boost through not only the $4 billion mine but the development of the $2 billion rail line and the $1 billion expansion of Abbot Point, near Bowen.

Adani has already spent $1.3 billion on the project and the development will require it to find about $4 billion in debt during a time when the coal market is in dire trouble.

The government-owned State Bank of India is expected to provide about $1 billion of that.

But Mr Janakaraj accused environmental groups of lying over claims that 11 multinational banks were refusing to fund Carmichael because of concerns about its impact on climate change.

Over its 60-year mine life the investment from Adani will be more than $16 billion.

CARMICHAEL MEGAMINE

Owner: India-based Adani.

Specifics: A total of 16 open cuts mines will be developed over the 60 years. There will be three underground longwall mines.

Output: It will produce 60 million tonnes a year at its peak for about 60 years. It will be Australia’s biggest coal mine.

Exports: Coal will be exported to India to generate electricity primarily at Adani’s own power stations.

Jobs: Estimated 10,000 new jobs at its peak including electricians, plumbers, fitters, builders, plant operators, drivers, geologists and mining engineers.

Area: The mine covers 44,700ha of mostly grazing land once owned by the Acton family and sold to Adani for $110 million.

Rail link: Adani and POSCO will build a $2 billion rail line to link with existing line to the port at Abbot Point, which will be expanded.

source: http://www.couriermail.com.au