Australian Prime Minister Tony Abbot addresses Indian business groups on benefits of Adani’s Galilee Basin coal mine development
2015 will see new developments in the Australian mining industry as well as the usual employment adjustments and trimming back of mine expansions.
Despite the challenges of falling commodity prices and the new focus from investment to productivity in 2014, there were some shining moments that breathed new hope into the mining sector.
If you’ve been following iMINCO Project News over the last 12 months, you’ll surely know about Adani, the Carmichael mine and the massive coal mining project in the Galilee Basin. This project is set to become one of the biggest in the world with estimates of some 60 million tonnes of thermal coal each year being exported to India.
Negative sentiment that spread throughout the industry when the downturn hit, sent shockwaves throughout the entire sector as job opportunities fell by the wayside and suddenly mining was not the place to be. It’s no surprise when we tell you coal and especially iron ore mining had been hit hard in 2014.
Everyone who is connected to the industry understands the pressures that Australian mining companies are under to trim costs, ramp up productivity and compete in a global market. In 2015, only the most lean and aware mining companies will ‘cut the mustard’ and emerge on a positive note.
Abbot visits India & assures Carmichael mine will happen
Which leads us nicely into the recent news coming out of India about the next big mining project in Queensland. Adani have been slogging away to get all approvals in place to develop the Carmichael mine project in the Queensland Galilee Basin. It has been widely reported in Australian media about the issues facing the development of the mine, but what never seems to reach the Australian media is the news that is being spread throughout India.
As India struggles with millions of its people living without access to electricity, the focus of its politicians and industrialists is to get India back on its feet and free those who suffer from impoverished beginnings to a life where the very basics of a normal life are accessible.
Qld government commits $300 million towards Carmichael mine
It is with this in mind that Queenslanders are getting more and more optimistic about the Carmichael mine development. India needs Queensland coal, and Queensland is more than happy to sell it to them.
“create more jobs and boost the economy of the Sunshine State”
Even the current Queensland government has pledged $300 million towards expediting the development of the mine to create more jobs and boost the economy of the Sunshine State.
With this in mind, we’d like to share a recent article that appeared on CNN and in Indian publications highlighting the Adani Carmichael mine and what its development means to millions of Indians.
At the end of 2012 Queensland Premier Campbell Newman and then Federal Resources and Energy Minister Martin Ferguson travelled to India to meet Gautam Adani to progress talks even further. The result of those talks allowed Australia and India to agree on a future plan to develop the coal resource.
100 million Indian citizens given access to electricity
As we begin 2015, Australian Prime Minister Tony Abbot travelled to India gave an address that stated an Indian conglomerate is all set to embark on Australia`s largest ever coal development to bring light to the lives of 100 million Indian citizens.
“If all goes to plan, next year, an Indian company will begin Australia`s largest ever coal development which will light the lives of 100 million Indians for the next half century,”¯ Abott said addressing Indian industry leaders during a luncheon meeting organised by industry chambers including CII and Ficci.
Abott, who is on a two-day official visit here said, “Top-quality Australian coal, for instance, will be available to power Indian households and businesses at the lowest price to consumers.”¯
Adani Group Chairman Gautam Adani was present on the occasion as Abbot puffed up his chest and exuded confidence that trade relations between Australia and India will be cemented even further.
“$10 billion Carmichael coal mine project”
It’s not certain why Abbot did not mention Adani in his address, although, as we all know, the government cleared the way forward for the $10 billion Carmichael coal mine project in the Galilee Basin in central Queensland.
Adani Mining had won Queensland state government approval to build a 300km rail line for its Carmichael pit to port project that will allow export of 60 million tonnes of coal a year after construction. In late 2014 Adani got the seal of approval from the Queensland government to build the 300km rail line. Korean firm POSCO has won the contract to construct the entire rail network as well as develop the Abbot Point ship loading terminal.
“$760 million into the Mackay region”
Given the enormity of the rail line construction task, a time frame of 2 years has been allocated to build the railway. This project alone is expected to inject around AUD $760 million into the Mackay region and over AUD $860 million into the state economy during the build phase.