Adani gives green light

$150m in contracts issued as project presses on

INDIAN mining titan Adani has given the official go-ahead for its controversial $16.5 billion Carmichael coal mine in central Queensland.

After seven years of state and federal assessments and legal challenges by conservation groups, the board of the Adani last night approved the “financial investment decision” on the project.

The Queensland Government last year granted Adani a mining lease for the project.

Pre-construction will begin in September, with more than $70 million in work to clear land, build roads and set up a workers’ camp. Construction will begin next year.

The Carmichael mine is the biggest proposed coal mine in Australia.

Forecast to produce up to 60 million tonnes a year, it is hoped to be the first mine to open up the burgeoning coal province, the Galilee Basin.

Billionaire Adani chairman Gautam Adani said it was a “historic day” for Indian investment in Australia.

“This is the largest single investment by an Indian corporation in Australia, and I believe others will follow with investments and trade deals,” Mr Adani said.

“We have been challenged by activists …. We are still facing activists. But we are committed to this project. We are committed to regional Queensland and we are committed to addressing energy poverty in India.”

Mr Adani said the Carmichael projects would generate 10,000 direct and indirect jobs, with pre-construction works starting next quarter.

Premier Annastacia Palaszczuk opened Adani’s regional headquarters in Townsville from where the company will oversee construction and operations.

The board decision was originally scheduled for last month, but was delayed after the Palaszczuk cabinet split over an intended royalties deferment deal that was to be offered to Adani.

State cabinet then reworked the royalties package to allow Adani to pay a flat rate of $5 million a year in the first five years before it then has to pay the full royalties.

The deferred royalties will be paid back, with interest.

Adani’s Australian head, Jeyakumar Janakaraj, said the company had already invested $3.3 billion in the project, including buying the bulk coal handling port of Abbot Point.

In a statement, Adani said it had announced contracts totalling more than $150 million for the 388km rail link between the mine and Abbot Point.

Adani has also applied for a concessional loan of up to $1 billion to help build the rail line to Abbot Point.

“But we are building more than a rail line,” Mr Janakaraj said.

“We are building a line that will open the Galilee Basin, linking that massive coal reserve to markets around the world, generating power, and – importantly – generating many thousands of direct and indirect jobs in regional Queensland.”