After eight years of planning, securing approvals and contesting legal challenges from anti-mining activists, the Adani Group Thursday said its Carmichael mine and rail project will be financed through its own resources.
The announcement was made to community leaders, mining industry contractors and suppliers at the Bowen Basin Mining Club luncheon in Mackay, regional Queensland, and follows recent changes to simplify construction and reduce the initial capital requirements for the Carmichael project.
Dow said construction and operation of the mine will now begin.
Our work in recent months has culminated in Adani Group's approval of the revised project plan that de-risks the initial stage of the Carmichael mine and rail project by adopting a narrow gauge rail solution combined with a reduced ramp up volume for the mine, Dow said.
This means we have minimised our execution risk and initial capital outlay, he said.
The sharpening of the mine plan has kept operating costs to a minimum and ensures the project remains within the first quartile of the global cost curve. All coal produced in the initial ramp-up phase will be consumed by the Adani Group's captive requirements, he added.
We will now begin developing a smaller open cut mine comparable to many other Queensland coal mines and will ramp up production over time to 27.5 mtpa, Dow said.
The construction for the shorter narrow gauge rail line will also begin to match the production schedule.
We have already invested USD 3.3 billion in Adani's Australian businesses," he said.
Today's announcement removes any doubt as to the project stacking up financially. We will now deliver the jobs and business opportunities we have promised for North Queensland and Central Queensland, all without requiring a cent of Australian taxpayer dollars, he added.
The group said, in addition to providing these jobs in regional Queensland, Carmichael coal will also provide a power source to improve living standards in developing countries.
The Carmichael project will deliver more than 1,500 direct jobs on the mine and rail projects during the initial ramp-up and construction phase, and will support thousands more indirect jobs, all of which will benefit regional Queensland communities, the company said in a statement.
Preparatory works at the mine site are imminent and Adani Mining is working with regulators to finalise the remaining required management plans ahead of coal production, some of which have been subject to two years of state and federal government review.
The company said this process is expected to be complete and provided by the governments in the next few weeks.
We have worked tirelessly to clear the required hurdles, Dow said, adding Given we meet the same environmental standards and operate under the same regulations as other miners, we expect that Adani Mining will be treated no differently than any other Queensland mining company.
This is an important milestone that will help create new opportunities for trade and investment between Australia and India, the statement said.
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