Australia's Adani Carmichael Coal Project Gets State Government Go-Ahead

Researched by Industrial Info Resources Australia (Perth, Australia)--The Queensland State Government recently approved development of Adani Mining Limited's (Brisbane, Queensland) US$15.4 billion (AU$16.5 billion) Carmichael coal mine. The company expects final approval from the Australian federal government by end of the third quarter of this year. Adani Mining would then award an engineering, procurement and construction management contract by the end of 2014.

The Carmichael coal mine is located approximately 100 miles (160 kilometers) northwest of the town of Clermont in the North Galilee Basin. The project would be Australia's biggest coal mine, with an estimated 90 years of operating life. Project development requires the construction of six open pit mines; five underground mines with the longwall mining method; and a coal-handling preparation plant (CHPP). The CHPP consists of five 1,600-ton-per-hour coal-processing modules, to produce 60 million metric tons of thermal coal annually. The CHPP will operate at a minimum of 7,200 hours per year.

The thermal coal from the Carmichael CHPP would be moved to the Port of Abbot Point via the proposed North Galilee Basin Rail (NGBR) line for export. Adani Mining has signed a 99-year lease with Port of Abbot Point Coal for Terminal 1. The current coal export capacity for Terminal 1 is 50 million metric tons per year.

The company also is proposing an expansion of Terminal 0. The project would be developed in two stages, with each stage allowing for the export of 35 million metric tons of coal per year. The first stage of the expansion is expected to be completed by 2016.

The proposed NGBR project to connect the mine to the Port of Abbot terminals is approximately 186 miles (300 kilometers) in length with seven passing loops. The final rail corridor would be 109 yards (100 meters) wide and each passing loop would be about 2 miles (4.3 kilometers) in length. Development of the rail line also would require the construction of five temporary accommodation camps for a total of 1,700 people.

Construction would employ 3,000 workers. Operations would create 500 permanent jobs.

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