Apr 07, 2016

Adani in talks on Carmichael service hubs

Adani in talks on Carmichael service hubs

The recent granting of mining leases means discussions can recommence on prospective people, logistics and mining services hubs for Adani’s $21.7 billion North Queensland projects, a forum heard today.

Adani Group chief executive officer Jeyakumar Janakaraj was addressing a Bowen Basin Mining Club meeting in Mackay regarding the group’s planned Carmichael coal mine and the related North Galilee Basin Rail and Abbot Point Port Expansion projects.

He named Townsville, Mackay, Rockhampton, and Bowen as playing key roles in supporting and delivering the projects.

“In conjunction with our valued partners such as Downer, we have been considering our preferred options for hubs to not only ensure we get the best value for this significant investment but, consistent with our undertakings, ensure local workforces and suppliers have the opportunity to benefit” Mr Janakaraj said.

“As we have consistently said, our workforce and suppliers will be Australian based, and within that, overwhelmingly Queensland based.

“Certainty on approvals is what is required for detailed and thorough planning for the construction phase of these important projects to commence.

“The granting of the MLs (mining leases) mean we can start to have more meaningful dialogue with our contractors and communities in preparation for an estimated 2017 construction commencement, pending the conclusion of additional politically-motivated activist appeals, and the conclusion of the balance of second tier approvals.”

Mr Janakaraj said it was important to note that many of the project locations were relatively remote and not immediately adjacent to large populations, so there would be a split of manpower, logistics and mining services across several locations during the different construction and operations phases.

“Townsville, Mackay, Rockhampton, and Bowen will all play key roles in supporting and delivering these projects, which are vital for the region,” he said.

“The composition of those hubs will be an outcome of the more detailed discussions we can now resume with our contractors and communities with a little bit more certainty.

“Importantly, and contrary to some naysayers, today Adani is clearly re-affirming its commitment to North Queensland and Central Queensland support and manpower opportunities.

“While we cannot pre-empt the appeals process, we look forward to being able to provide more detailed announcements between now and the end of the year on these benefits and hub details as the planning and appeals are finalised.”

State Development and Natural Resources and Mines Minister Dr Anthony Lynham this week approved the grant of three individual mining leases about 160km north-west of Clermont for Adani’s thermal coal project.

The granted leases – 70441 Carmichael, 70505 Carmichael East and 70506 Carmichael North – are estimated to contain 11 billion tonnes of thermal coal.

Adani has estimated the mine, rail and port project will generate more than 5000 jobs at the peak of construction and more than 4500 jobs at the peak of operations.

Dr Lynham said the process to date included public objections in 2014, Land Court hearings in 2015, and a Land Court recommendation in December 2015 that the mining leases be granted.

He said overall the coal, rail and port project now had 19 permits and approvals at local, state and federal level, including nine primary approvals from the State and Commonwealth Government.

“A number of other steps have to be completed before mine construction can start,” he said.

“They include secondary approvals for rail, port facilities, power, water, roadworks and the airport and a financial assurance with the Department of Environment and Heritage Protection.

“The independent Coordinator-General will continue to work with Adani to progress the project.”

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