Name of the Project
Carmichael coal mine project.

Location
The project is located about 160 km north-west of Clermont, in Queensland, Australia.

Client
Adani Mining, a wholly owned subsidiary of India’s Adani Group.

Project Description
Adani proposes to build a 60-million-tonne-a-year opencut and underground greenfield coal mine, in the Galilee basin, as well as a
189 km greenfield rail line, connecting the mine to the existing Goonyella and Newlands rail system, south of Moranbah.

On-site development within the mining lease will include:
• six opencut pits, with a combined capacity of 40-million tonnes a year of product coal, predominantly mined using truck-and-shovel/excavator operations, supplemented by draglines and dozers for overburden removal;
• five independent underground longwall mines, with a combined capacity of 20-million tonnes a year of product coal, mining two seams of more than 45 km north to south, a conceptual longwall panel length of 5 000 m, 300-m-wide longwall panel voids and an extraction face of between 3 m and 4.5 m high;
• five mine-infrastructure areas servicing each of the opencut and underground mines comprising mine-service areas, power and fuel supply storage, water supply and management, mine water management, roads, transport facilities, waste disposal facilities, communications and medical facilities;
• a coal handling and processing plant, designed to process 74.5-million tonnes a year of raw coal;
• out-of-pit waste rock structures to store the initial volumes of the project’s 13.1-billion bank cubic metres of overburden and interburden, prior to the storage of waste-rock in mine voids, when available; and
• coal stockpiles, tailings storage cells, water management structures, a 2.5 km portion of the rail loop and coal-loading facilities adjacent to the rail.

Off-lease infrastructure includes:
• a workers accommodation village and associated facilities, located 12 km east of the mine, which include accommodation for up to 3 500 employees, with medical, kitchen/dining, laundry and recreational facilities, parking, sewerage and power infrastructure, a maintenance shed, as well as hazardous materials and chemicals storage;
• an airport to provide access for a 150-seater aircraft and the project’s fly-in, fly-out workforce, including a runway and terminal with security, amenities, a café, departure lounge, parking and passenger sit-down areas, emergency fuel storage and aerodrome rescue, as well as firefighting services facilities;
• a heavy industrial area, with facilities to service and maintain the mine, as well as offsite infrastructure and rail, including vehicle and equipment fabrication and maintenance workshops, a concrete batching plant, a hot-mix bituminous plant, bulk fuel storage, vehicle wash areas, warehouse and storage, as well as office and administration buildings.

It is proposed that the industrial area be located directly north of the proposed rail alignment, which will allow for access to a rail siding for use in supply logistics during mine development.

The area will include:
• water supply infrastructure to allow for the extraction, storage and delivery of up to 12.5 Gℓ/y of water, with an average yearly extraction of 10 Gℓ, including a floodwater harvester on the Belyando river, a 70 km raw-water supply pipeline from the Belyando river to the mine site, pumpstations, an off-site storage facility; and
• the upgrade and realignment of the Moray–Carmichael road to circumvent the mine footprint.

The rail component of the project includes a greenfield rail line, connecting the mine to the existing Goonyella and Newlands rail systems to allow for the export of coal through the ports of Hay Point and Abbot Point respectively, including:
• a 120 km dual-gauge rail from the mine site, running from west to east to Diamond Creek;
• a 69 km narrow-gauge rail, running east from Diamond Creek and connecting to the Goonyella and Newlands rail system, south of Moranbah; and
• a 4.5 km dual-gauge reception and departure line, and an 18.7 km balloon loop loading line, predominantly located outside the mining lease.

The rail component of the project also includes four construction camps, located at intervals of about 60 km along the proposed rail line, each accommodating 400 people; 29 track and 25 bridge laydown areas; and a construction depot close to the Borrow 7 quarry and the Gregory developmental road.

Further, there will be five quarries adjacent to the rail line to extract fill materials for the construction and maintenance of the railway, road construction and upgrades, as well as embankment material.

Jobs to be Created
The combined mine, rail and port operations are expected to create more than 10 000 direct and indirect jobs, and supply opportunities for local businesses.

Net Present Value/Internal Rate of Return
Not stated.

Value
$16.5-billion.

Duration
Coal production from the mine will start in March 2020.

Latest Developments
There will be no Australian federal financing of a loan facility for Adani to build a rail line to its proposed Carmichael coal project, a government frontbencher has confirmed.

Assistant Minister for vocational education Karen Andrews told Sky News Speers in a televised interview on February 5 that financing a loan facility for the Adani rail line would not proceed: “Given the position that the Labor state government actually took to the last election and their election, there won’t be financing from the federal government.”

Adani planned to use a A$900-million government loan to help build a 400 km rail line to connect its long-delayed Carmichael coal mine with a Pacific Ocean port, in Queensland.

The loan was to come under the federal government’s Northern Australia Infrastructure Facility (NAIF) programme, but was vetoed by the newly elected Queensland state premier in December 2017.

There had been media speculation that funding might have flowed to the project through legal work-arounds, but in a further blow to the proposed Carmichael coal mine project it was made clear on February 5 that this would not happen.

Resource Minister Matt Canavan’s office has confirmed there is no funding proposal other than the NAIF loan application, which will not proceed.

Adani told Reuters in December that it would develop the mine on an owner-operator basis. It then cancelled an agreement with Downer EDI worth a reported A$2-billion to outsource the mine’s operation.

The proposed Carmichael project has attracted protests from environmentalists.

A number of lenders, including Deutsche Bank, Commonwealth Bank of Australia and two Chinese State banks have said they will not provide funding for the Adani coal mine project, given the opposition to investment in fossil fuels. 

Key Contracts and Suppliers
Downer Mining (construction and operation of the mine); Austrak (concrete sleepers) and Arrium Mining and Materials (railway tracks), GA Services (refurbishment of camp accommodation).

On Budget and on Time?
The project has been delayed for years, as opposition from environmental groups have led banks to steer clear of funding what will be the biggest coal mine in the country.

Contact Details for Project Information
Adani Mining, tel + 61 7 3223 4800, fax + 61 7 3223 4850 or email Reception.Australia@adani.in.