Adani Mining will fund stage itself
AFTER years of fighting against activists and claims the Carmichael coal mine would never proceed, Adani is officially pushing ahead with the multi-billion dollar project.
Adani Mining chief executive officer Lucas Dow yesterday revealed the company would fully fund the first stage of the highly contentious mine itself, in a massive coup for Queensland jobs.
“This removes beyond and shadow of a doubt now that this project stakes up environmentally and financially,” he said.
The decision creates a massive headache for the Palaszczuk Government after Labor was targeted by activists during last year’s election and scuppered a Federal loan for the company to appease the protesters.
With forces within the government hoping the mine would fail, Adani’s decision risks reigniting internal frictions over the company’s royalties deal.
However, the company’s decision to push ahead could not come at a better time for Queensland.
The state is now holding the inauspicious mantle of Australia’s unemployment capital and new figures show the value of construction work completed in the September quarter was the second worst result since September 2007.
Adani’s decision comes after the company reworked the mine’s timetable to ramp up to 27 million tonne annual production over several stages and revealed plans to cut costs by using part of Aurizon’s existing narrow-gauge rail network.
Once touted as a $16.5 billion mega-mine, industry experts now expect the first stage of the Carmichael mine to cost about $2 billion.
Mr Dow said Adani would begin construction immediately after receiving final environmental management plans from the State and Federal governments.
“We have already started our plan for mobilisation and the moment we have got those plans from the State and Federal government we will be starting construction,’’ Mr Dow said.
“We are excited about is getting on and delivering the jobs for Queensland.”
Mr Dow said the company had spent eight years gaining environmental approvals only to be beset with court appeals by activists.
Adani has already invested $3.3 billion to bring the mine to fruition.
Resources Minister Matt Canavan said the Carmichael mine would be of great benefit to Townsville, Bowen, Mackay, Rockhampton and Gladstone.
“Queenslanders are looking forward to projects such as the Carmichael mine reinvigorating those towns and others once again,” he said.
Australian Conservation Foundation chief Kelly O’Shanassy promised a renewed fight to stop the mine.
“The Stop Adani movement will fight this proposed mine every step of the way,” she said.