Completes mining exploration at Carmichael mine in Australia, estimates 10 billion tone coal reserves
Adani Group chairman Gautam Adani on Sunday said that they were mulling a global bond issue of $1.5 billion in the future for which talks have been initiated with bankers.
This was revealed by Adani while talking with reporters on sidelines of a function organized by the group.
“A $1.5 billion global bond issue is on cards,” Adani told reporters, but did not divulge details of it. It is believed that the company has initiated talks to with various banks, however, things were at initial stage, a company official said, adding that the fund would be utilized for infrastructure projects.
The Rs 40,000 crore company also announced that they had completed the coal mining exploration programme at the Carmichael mine in the Galillee basin of Queensland, Australia, and are estimating coal reserves of up to 10 billion tonne. This would be the single largest coal tenement globally where the company plans to set up world class mine, rail and port infrastructure, they claimed.
The first batch of coal for export from the Carmichael mine is likely to roll out in early 2016, while the construction of infrastructure at the mine, port and railway line is likely to commence by the end of 2013.
“Initially we plan develop 60 million tonne per year capacity out of which 50-60 per cent would be sent to Indian market for our the power plants here. While 50-40 per cent would be held for trading purpose,” Adani said.
"Our partnership with Australia and Queensland has been one of exceptional trust, transparency and understanding. Having seen the speed and with the support received to undertake and complete the largest and most ambitious mining exploration programme in record time, I am now certain that Queensland has been the right choice. Australian industry and the Indian corporates like the Adani Group, have some distinctive synergies, which will prove to be of mutual benefit to all in the long run. The Adani Group stands committed to setting up world class infrastructure facilities such as a mine, railway and port in Australia," said Adani.
“We plan to increase our power production capacity from present 5320 MW to 10,000 MW by the end of 2013 with operations commencing in Tiroda and Kawai power plants,” he added. The Adani Group Chairman further claimed that by 2017-18 they would be adding another 10,000 MW of power capacity in order to achieve the company’s 2020 goals.
The Company’s target for 2020 includes increase in mining capacity from 3 million metric tonne(MMT) in 2011 to 200 MMT, increase annual cargo handling capacity from present 78 MMT to 200 MMT and generating power of upto 20,000 MW. Adani group has power plants in Dahej, Kawai, Tiroda, Chinwada besides Mundra.
Talking about the approvals and clearance to their operations in Australia Adani said that they were in process and were likely by mid of 2013.
The Australian minister for Resources and Energy, Martin Ferguson, and Premier of Queensland, Campbell Neman, were also optimistic about all federal clearance being granted to Adani’s project downunder.
“There are number of approvals which the Adani needs for the project. They are in successive stages. Hopefully by 2013 mid the picture would be clear,” Ferguson said, adding that Adani’s project was one of the two key projects in the Queensland province. The other being that of GVK.
According to CEO of Adani’s Australia operations, Harsh Mishra, “The Carmichael mine are being developed based on a pit to plug model where process of mining, railway, port have been integrated.”
“Out of the estimate 10 billion tonne approximately 80-90 per cent of coal would be recoverable,” Mishra said.
"The Adani Group is thus, now ready to gear up with its $ 10 billion Carmichael Mine project which will include the construction of a world class mine, rail and port infrastructure all benefitting the state of Queensland," a company statement issued on Sunday said.
The mining exploration programme, that employed more than 200 people both on and off site, has established reserves of up to ten billion tonnes of Joint Ore Reserves Committee’s (JORC) standard Coal Resource, including 3.4 billion tonnes in indicated and measured category in the Galilee Basin Tenement.
The Adani Group has already invested $3 billion in cash in its integrated Australian projects through its subsidiary in Australia Adani Mining Pty and expected to invest $7 billion more over the next few years. The group is operating Abbot Point coal terminal in Queensland which it had acquired in 2011 and is planning to increase its annual capacity to 120 million tonnes per year from current 50 million tonnes.
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