Adani strikes coal in Australia

Coal Insights Bureau

Bravus Mining and Resources, Australian mining arm of Adani Group, has struck coal in the Carmichael Mine in Queensland.

“Bravus has now struck coal and exposed the first of the coal seams at our Carmichael project, almost two years to the day since we received our final approvals. This coal will help provide affordable base load energy in India to complement Adani’s renewable portfolio,” the company said.

The Carmichael Mine consists of thermal coal deposits in Queensland’s North Galilee Basin, approximately 160 kilometres northwest of the town of Clermont.

The mine will produce 10 million tons per annum (mtpa) of high quality coal targeting India and South-East Asia.

Coal from the mine will be railed more than 300 kilometres for export through the North Queensland Export Terminal, which is approximately 25 kilometres north of Bowen.

“Proud of my tenacious team who mined Carmichael’s ‘first coal’ in the face of heavy odds. There couldn’t be a better birthday gift than being able to strengthen our nation’s energy security and provide affordable power to India’s millions,” the company and group chairman Gautam Adani said on June 24.

According to Bravus CEO David Boshoff, the Carmichael mine project is on track to export the first coal this year with India being the foundation customer where the company has already secured 10 mtpa of supplies.

“The coal will be sold at index pricing and we will not be engaging in transfer pricing practices, which means that all of our taxes and royalties will be paid here in Australia. India gets the energy they need and Australia gets the jobs and economic benefits in the process,” Boshoff said.

“Throughout the last two years of construction and during the many years when we fought to secure our approvals, our people have put their hearts and souls into this project - it is wonderful that we have now struck coal,” he said.

Carmichael coal will contribute to Adani Group’s burgeoning energy portfolio that is designed to create a sustainable energy mix, incorporating, thermal power, solar power, wind power and gas.

Adani group is also present in the Renewable Energy space in Australia with a 65 MW capacity at Adani’s solar farm at Rugby Run in central Queensland is part of a portfolio of 24.3 GW of Adani Green Energy Ltd (AGEL) which recently acquired SB Energy Holdings Ltd.

“As a global company we are walking the talk when it comes to delivering a sustainable energy mix,” Boshoff said.

Coal Handling Plant (CHP) and Coal Preparation Plant (CPP)

In January, DRA Global (DRA) was awarded a contract for the Carmichael Project to deliver a $140 million coal preparation plant, where the coal is processed and prepared for transport.

“DRA will carry out the design, engineering and construction of our Coal Preparation Plant, in addition to the Coal Handling Plant that they are already delivering. We expect to see more than 250 people working on these combined projects onsite, ensuring regional Queensland cities like Mackay see the benefits going back into their local economies,” Boshoff said.

The Coal Handling Plant and the Coal Preparation Plant work together to prepare and process the coal to meet market specifications.

“The Carmichael mine project is on track to export the first coal this year with India being the foundation customer where the company has already secured 10 mtpa of supplies.” David Boshoff, CEO, Bravus Mining and Resources

Rail infra project

The Carmichael Rail Network (CRN) is a 200 km narrow gauge railway connecting Queensland’s Galilee Basin to existing rail infrastructure and the North Queensland Export Terminal – Australia’s most northerly coal export port.

The completion of the railway in 2021 will open up the Galilee Basin for further development, creating new jobs and business opportunities for Queenslanders.

The project requires 400 km of rail line using 26,417 tons of steel.

Community development

As part of its effort to help local communities in Queensland and the livelihood of the people, the project has created more than 2,500 jobs and signed more than $1.5 billion in contracts.

Queensland contributes to than 90 percent of the project contracts spread across all corners of the state to give as many regions as possible the opportunity to benefit from the project, while also tapping into the highly-skilled construction and resources industry workforce that Queensland possesses.