Adani Group strikes first coal in Carmichael mine
The project, which will produce 10 mt of coal a year is the biggest investment by an Indian company in Australia
Adani Group struck first coal from its Carmichael, Australia, project on Thursday and will start shipping to its customers according to schedule.
With this, the project will not only lift the economic prospects of the hitherto barren Australian outback, but also help Indian power plants source cheap coal.
The project had faced protests from a section of the local population over environmental concerns, with several international banks even refusing to fund it.
The group, however, went ahead with the project, which included construction of a brand new railway line connecting an Australian port to the mine situated 300 kilometres away in Queensland.
The group had initially planned the project in 2010 with an investment of A$16.5 billion, but later scaled it down to A$2 billion.
The project, which will produce 10 million tonnes (mt) of coal per year, is the biggest investment by an Indian company in Australia. The project also comes at a time when coal prices are touching a three-year high, with demand from China fueling the prices.
Chief Executive Officer of Adani's Australian company, Bravus Mining and Resources, David Boshoff, said it was an exciting day for over 2,600 people working on the project. “Throughout the last two years of construction and during the many years when we fought to secure our approvals, our people have put their heart and soul into this project. It is wonderful that we have now struck coal,” he said.
“Nearly two years ago today we received our final approvals to develop the Carmichael mine and rail project. We have faced many hurdles along the way, but thanks to the hard work and perseverance of our team, we have now reached the coal seams. Bravus was on track to export the first coal as promised, in 2021,” he added.
“We’re on track to export the first coal this year, and despite reaching this significant milestone, we will not take our eyes off our larger goal of getting coal to market,” he further said.
India will be a foundation customer for the Carmichael mine and is the fourthlargest global user of electricity, as well as the source of the biggest growth in global energy demand.
Bravus had already secured the market for the 10-mt per annum of coal produced at the Carmichael mine.
“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 in Australia. India gets the energy it needs and Australia gets the jobs and economic benefits in the process,” said Boshoff.
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.
Boshoff said Adani Group had secured its position as the world’s largest solar company, following last month’s announcement that Adani Green Energy (AGEL) has acquired SB Energy Holdings, which will see AGEL achieve a total renewable energy capacity of 24.3 gigawatt (Gw).
“The 24.3-Gw capacity will be enough energy to power more than 8.5 million homes, or nearly all the households in Australia (9.2 million) each year. Adani’s solar farm at Rugby Run in central Queensland is part of this portfolio, with a total capacity of 65 megawatt going into the regional Queensland grid, equivalent to powering about 27,500 homes each year.
As a global company, we are walking the talk when it comes to delivering a sustainable energy mix,” Boshoff said in a statement.
The coal from the project will be shipped to power plants in India which require high quality coal. The group is also constructing renewable power projects in Australia as part of its shift to greener energy projects.