ADANI Example 2016 Design

INVESTING IN QUEENSLAND

Project Partners:

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INVESTING IN QUEENSLAND Not only is the Carmichael coal, railway and port project set to develop the largest coal mine in the world, the project will also result in economic and social benefits for Queensland.

WRITTEN BY: ROBERT SPENCE & PRODUCED BY: GLEN WHITE

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Jeyakumar “JJ” Janakaraj, CEO of Adani Mining

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ith an estimated price tag of USD $16.5 billion in capex and sustaining capital, the Carmichael coal, railway and port project based in Queensland, Australia, is on-track to build one of the world’s largest thermal coal mines, producing roughly billions of tonnes of coal resources during its estimated 60-year lifespan. The Project is being spearheaded by Adani Mining, the Australia-based subsidiary of Adani Group, and the 4 | FEBRUARY 2016

expectations are as high as the cost.

Social and Economic Benefits Located in the north Galilee Basin approximately 160 km north-west of Clermont in Central Queensland , The Project is set to not only benefit the industry but the community as well. “[The Project] will deliver vital export opportunities for Queensland,[create] 10,000 local jobs,[garner] $22 billion in taxes and royalties, and [provide] crucial work

CoalCaption Mine inforMelbourne photo here

“THE REVENUE GENERATION AND THE RETURNS ON THE INFRASTRUCTURE ASSETS, ARE TRULY NEEDED BY THE STATE. THIS MODEL WILL NOT JUST CREATE JOBS, BUT WILL CREATE A FUTURE.” Jeyakumar “JJ” Janakaraj, CEO of Adani Mining

opportunities for small- and mediumsized businesses,” said Adani Mining CEO Jeyakumar “JJ” Janakaraj.

Funds received from taxes and royalties will be directly reinvested, assisting with the development, maintenance and support of schools, hospitals, roads, and other local services.

“The biggest part of the project will be the multiplication effect; there is no point in just being the world’s largest mine. Rather, I think the point of the project is to create value for millions www.adanimining.com

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IN OUR MINDS, THIS IS THE MINE OF THE FUTURE. IT WILL NOT ONLY CREATE JOBS, BUT WILL ALSO SUSTAIN THE SURROUNDING ECONOMIES. Jeyakumar “JJ” Janakaraj, CEO of Adani Mining

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of people around the world starting from where the mine starts, not just in economic activity but also in social wellbeing.

“It’s a mine, rail and port, but it won’t just cater to Adani. It will assist other parties in the region to share infrastructure and grow their business,” Janakaraj added.

Setting the Stage A project of this size calls for extensive logistical planning, from permits to partnerships and everything in between. And even though a lot has been accomplished thus far, much still remains.

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Assembly excavator in action

“So far all, of the approvals are completed as well as the entire engineering. We have finished the bank and feasibility phase and now we’re in the ordering phase, completing key contracts. Last year we completed the port contract and we just recently finished the Downer contract for mining,” said Janakaraj.

The Downer contract, which is a five-year deal that includes two additional oneyear options, is for mining services and construction of mine infrastructure. It will also include statutory management and mine operations, drilling, blasting, and load and haul of waste and coal.

Downer will also be responsible for

JJ Speaks with Adani staff

www.adanimining.com

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INVESTING IN QUEENSLAND the engineering procurement and construction of on-site infrastructure and preparatory civil works. Adani will provide the capital for the major fleet for the mining services contract.

“In selecting Downer as the mining services contractor, we are confident that not only are we wellplaced to meet our longstanding first coal guidance of 2017, but that we are one step closer to our goal of building a long-term future with Queensland,” said Janakaraj.

Adani has also secured a $2.2 billion agreement with Korean-

based powerhouse POSCO for the engineering, procurement and construction of the North Galilee Basin Rail (NGBR).

Adani is expected to complete contracts for the coal handling plant and mine construction later this year.

The company is currently finalizing contracts for machinery providers, and names should be announced sometime later this month.

Ensuring Success “When you set up a business, you have to set it up right for long-

Integrated communication for ideal results www.adanimining.com

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Adani Mining

term production and gains. You must remain competitive in the global cost curve, no matter what,” explained Janakaraj.

Enter the QUT Graduate School of Business, with which Adani recently partnered to provide a series of workshops and individual and team coaching for executives and emerging leaders connected to The Project. This 18-month partnership is a proactive effort to enhance leadership capabilities and remain competitive in today’s tough global market.

“We have a large keen interest in our partnership with QUT to handle the complex project we are running.

We can pay contractors to build the mine, port and rail, but with QUT, we’re building the brains of the operation.”

The Finished Product The end-goal of The Project is to execute a vertically integrated pit-to-plug business strategy, revolutionizing the industry as the mines, port and railway work in unison to provide coal to consumers.

“Multiple mines will be included 12 | FEBRUARY 2016

“THE END GOAL IS TO E INTEGRATED PIT-TO-PLU REVOLUTIONIZING THE IN PORT AND RAILWORK COAL TO CONSUMERS. –J

Queensland Fleet

EXECUTE A VERTICALLY UG BUSINESS STRATEGY, NDUSTRY IN THE MINES, IN UNISON TO PROVIDE

Jeyakumar “JJ” Janakaraj, CEO of Adani Mining

INVESTING IN QUEENSLAND on the same property with an open pit and an underground pit,” Janakaraj explained. “The first phase of the project will produce 40 million tonnes of coal, which will include 15 million tonnes from the underground mine, while the open pit will produce 25 million tonnes of coal. The second phase will produce 60 million tonnes.”

The coal from the mine will be transported by a 388 km standard gauge rail line to one of two terminals at Abbot Point Port near Bowen. The rail infrastructure will be capable of transporting 60 million tonnes of coal per year.

“We will be utilizing at least 45, 400-tonne driverless trucks.

All the vehicles will be capable of automation. When we ramp up the mine, everything will be autonomous from mine to port. In our eyes, this is the mine of the future,” said Janakaraj.

The port, which was purchased

by Adani on a 99-year lease in 2010, will be expanded to hold 120 million tonnes, nearly doubling the current capacity (50 million tonnes). Because the port is used by large mining www.adanimining.com

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Adani Mining

CEO Adani Ports, Capt Sandeep Mehta, CEO Adani Mining, Jeyakumar Janakaraj, COO Adani Mining, Samir Vora

companies including BHP Billiton, Rio Tinto and Glencore, the vision behind the expansion, along with increasing capacity, once again returns to supporting growth within the industry and ensuring socioeconomic benefits.

“We want to create a multi-user facility model for the infrastructure so more companies can use it and

grow,” said Janakaraj. “The revenue generation and the returns on the infrastructure assets are truly needed by the State. This model will not just create jobs but will create a sustainable future for Australia.”

Construction of the Carmichael coal, railway and port project is expected to commence later this year, with the first coal expected in 2017.

COMPANY OVERVIEW

INDUSTRY Coal Mining 14 | MONTH 2016

HEADQUARTERS

ESTABLISHED

Queensland, Australia

2010

INVESTING IN QUEENSLAND

Abbot Point Video

fligx EMPLOYEES 201-500

REVENUE

SERVICES

Not Disclosed Mining www.companyurl.com | 15

CEO PROFILE Jeyakumar “JJ” Janakaraj ADANI MINING

HOW DOES THE PROCESS TRANSLATE TO THE OVERALL SUCCES OF THE COMPANY? Jeyakumar “JJ” Janakaraj isn’t your ordinary executive. Since starting his career in the smelting sector in India, JJ has quickly become one of the most well-known names in mining. A walking example of success, he has proven that hard work, dedication and the right attitude are key traits to help one thrive in his or her professional career. In addition, strong leaders who provided priceless insights also played a large role.

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CEO PROFILE WHAT BOOK ARE YOU CURRENTLY READING? As the current CEO of Adani Mining, the Australian-based subsidiary of the Adani Group, JJ is forging a path for the continued growth of the industry, most recently through the Carmichael coal, railway and port project. Based in Queensland, Australia, Adani’s project is set to develop the first fully autonomous mine site in the world, not to mention the largest.

HOW DO THE EMPLOYEES IMPLEMENT THE PROCESS IN ORDER TO MAINTAIN AN EFECIENT WORKFLOW? I became the president of a company in 2008—I was 38 years old. Without having an MBA, becoming a president of a company is fast-track growth. I was clearly being groomed because there were certain roads that my previous employers wanted me to take and I was able to get ahead.

True to his word, “I focus on people WHAT ARE SOME a lot,” he explained. “One of my core EXCITING NEW strengths is allowing people to do PROJECTS THAT ARE IN what they need to do to perform.

THE WORKS? When employees understand the I took over as the Head of Projects ins and outs of what it takes to run for Hindustan Zinc in 2002, and and maintain a mine, the outcome is was responsible for the expansion usually far greater. You can only learn from 0.16MT to 1.06 MT capacity something by being thrown in the during this period, when we became pool. You can’t keep people standing the world’s largest integrated zinc up and try to teach them everything producer through 2008. without putting them in the water When the financial crisis hit, I was To assist in developing and sent to the Konkola mines in Zambia,” nurturing young talent, Adani Mining explained JJ. “I was the director first partnered with QUT Business School and then CEO of that company in the in Queensland to open the doors for copper division in Zambia, and I was employees to become future leaders. there for five years, but my overall Emerging leadership is a big focus for career in Vedanta was 18 years long, the CEO, and providing people with along with three years in ESSAR.” opportunities to grow is critical. www.companyurl.com

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Level 25, 10 Eagle Street, GPO Box 2569 Brisbane, Queensland, Australia 4000 Tel: 61-7-3223 4800 Reception.Australia@adani.in

www.adaniaustralia.com.au