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Adani self-finances Carmichael mine for $ 2 billion, construction will begin before Christmas

Indian energy giant Adani has finally clicked on his controversial $ 2 billion Carmichael mine and will finance the project itself, and construction should start before Christmas.

After eight years of litigation by environmental activists and delayed allegations, Adani Australia Executive Director Lucas Dou said on Thursday that the company had finally reached the financial completion of the project, which could begin exporting coal by the end of 2020.

This decision could be a catalyst for the opening of the Galilee border basin in Central Queensland — with other large coal mines that are expected to follow, including two GVK / Hancock Coal mines, and the recently approved Chinese project worth $ 6.7 billion of MacMines. He will also be welcomed by coal mine activists in the Morrison government, including Minister of Federal Resources Matt Canavan.

The project will also put pressure on Federal Labor leader Bill Socrates and Prime Minister of Queensland, Prime Minister Anastasia Palaschuk, who were both less enthusiastic about this project – on the eve of federal elections next year.

Last month, Adani said that she would reduce the scale and scale of the Carmichael mine, reducing it from 60 million tons to $ 16.5 billion. USA, up to more controlled 10-15 million tons per year, and the potential can be increased to 27 million tons per year.


Adani, who has already spent $ 3.3 billion in Australia, said that the capital cost of a project with a reduced amount of funding would be about $ 2 billion. They spoke to international banks about financing the project, but Mr. Dow said that it was no longer necessary.

He said that the “aggravation” of the mine plan was to reduce operating costs to a minimum, and the construction and operation of a coal mine would begin.

"We pulled the trigger, and we have the finances, and we are ready to go," – said Dow in an interview Australian Financial Review,

“It has been a long time, and we are obviously very pleased to announce this so that we can continue this and deliver work for people who have stood by us all this time. I desperately want these jobs to come to northern Queensland. ”

Mr Dow said that the project, which now only needs final management plans signed by state and federal governments, will be funded by the Adani Group’s parent company, and not from outside the bank.

“It’s like Rio Tinto or BHP funding the project. This comes from the treasury of the group, and they are secured, ”he said.

When asked if the Adani Group should take money from international banks to help finance projects, including the Carmichael mine, Mr. Dow said he "did not want to speculate."

“This is a question for the class treasury. The important part for us is the Carmichael mine, and the railway is fully funded, and we are able to cope with this. We are very masters of our own destiny. ”

Mr Dow, the former executive director of BHP, said that any future expansion of the mine and the railway to 27 million tons would be funded by profits from the initial production of the mine.

Environmental groups, fossil fuel control organizations and even some politicians expressed skepticism as to whether the Carmichael project could ever get out of the ground because the deadlines had been delayed over the past few years.

Mr Dow said that the announcement on Tuesday should remove any doubts about the Carmichael project, stating that it remains within the first quartile of the global cost curve.

Adani said that the Carmichael project will deliver more than 1,500 direct jobs to mining and railway projects in the early stages of construction and construction and will support thousands of indirect jobs. This is far from the 10,000 jobs that have been advertised for the project in the latest incarnations.

Adani announced in September that she would abandon plans to build her own 388-kilometer standard gauge railway line to Abbot Point, but now instead build a 200-kilometer narrow-gauge line that will join the existing Aurizon coal network, a solution that saved $ 1.5 billion

The Adani railway line to the Galilee basin will also open up opportunities for other projects, including the GVK / Hancock project and the Clive Palmer Waratah Coal for launch and launch.

He applied to Aurizon to access his Queensland regulated central network. The new 200-kilometer railway channel will have potential for both the planned 27 million tons and up to 40 million tons down the route, if required, and depending on market conditions.

The government of Palaschuk unexpectedly announced during last year’s election campaign that it would not support a federal loan for the $ 5 billion Adani mine from the Infrastructure Fund of Northern Australia, saying it did not deserve the financing of taxpayers. This step was considered as a step to ensure Green preferences in a number of places in Brisbane. In November, the Palaschuk government was returned for a second term.

Mr. Shorten was an active supporter of the Adani project, building on the jobs that the project would create throughout Queensland. But in recent months he has refused, using the same lines as the Palaschuk government, to finance taxpayers with mine.

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