ADANI SHELVES AIRSTRIP PLAN

THE company developing the Carmichael coal project has shelved plans for an airstrip at the mine, saying it will not be immediately needed.

Adani Mining CEO Lucas Dow ( right) said the decision meant no investment would be required from the Townsville and Rockhampton councils, as previously planned.

“Having adopted a gradual construction and ramp up for the mine, the airport facilities as originally contemplated are not immediately necessary,” Mr Dow said.

He said by gradually ramping up mine production to 27 million tonnes a year, rather than reaching this production rate immediately as per the previous plan, the initial investment in the airstrip was not required.

Funding for future airport requirements would be the subject of future discussions, he said.

“Importantly, Rockhampton and Townsville will represent the primary hubs for our workforce,” Mr Dow said.

“We think this is a great outcome for Rockhampton and Townsville. We look forward to seeing Rockhampton and Townsville thrive. They are both vibrant communities with a great lifestyle and community spirit.”

Adani has scaled back proposed investments from $ 16.5 billion to a capital cost understood to be less than $ 2 billion by lowering initial production levels and linking into the existing Aurizon rail network.

Now Adani plans to export an initial 10 to 15 million tonnes a year, with a capacity to expand up to 27 million tonnes, which is less than half the original capacity proposed in 2010.

A 200km rail link will be needed from the Galilee Basin mine site to link with Aurizon’s network.

It is understood the mine and rail construction will create about 1500 jobs and workers will access the site by road.

An announcement on financial close of the Carmichael mine is expected before the end of the year.