Adani has today announced the long-awaited green light for its Carmichael coal mine and rail project in central Queensland.
It will be 100 per cent financed through the Adani Group’s resources, according to Adani Mining chief executive officer Lucas Dow.
Mr Dow made the announcement today in Mackay and said construction and operation of the mine would now begin.
“Our work in recent months has culminated in Adani Group’s approval of the revised project plan that de-risks 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,” Mr Dow said.
“This means we’ve minimised our execution risk and initial capital outlay.
“The sharpening of the mine plan has kept operating costs to a minimum and ensures the project remains within the first quartile of the global cost curve.”
The Queensland Resources Council welcomed the announcement and said the investment in the project was a sign of the strength of the Queensland resources sector.
“This is great news for Queensland and great news for regional Queensland in particular, because every new resources project benefits all of us,” QRC chief executive Ian Macfarlane said.
“Adani has shown it is committed for the long term to an investment that will create jobs now and decades into the future.
“In recent months, Adani has made sensible revisions to the project to ensure it can get under way as soon as possible, including a scale up to capacity and a decision to use common narrow gauge infrastructure.”
Minister for Resources and Northern Australia, Matthew Canavan, congratulated Adani on its focus and commitment to the project “in the face of longstanding, ill-informed protest activity and an indecisive State Labor Government”.
“Adani’s ability to re-scope and finance its Carmichael mine and rail project proves it is a viable, job-creating concern which stands on its own two feet financially and environmentally,” Senator Canavan said.
“This type of commitment is the hallmark of Queensland’s resources sector, which has a well-earned reputation of being the powerhouse of Queensland’s economy.
“Great communities like Townsville, Bowen, Mackay, Rockhampton, Gladstone, the Central Highlands and dozens of others have prospered because of the mining sector.
“Queenslanders are looking forward to projects such as the Carmichael mine reinvigorating those towns and others once again.”