Carmichael mine will be one of the cheapest mines in the world to operate says Adani CEO
Adani has made a bold start to the year by stating they have boosted their investment in the Carmichael mine by some 200 percent.
The Galilee Basin mega-mine has been gathering momentum throughout 2014, with increasingly positive news once again solidifying the notion that this mine will go ahead. Despite the many road blocks and intervention by green groups, the Carmichael mine and the associated infrastructure look more and more certain this year.
Carmichael mine valued at $3 to $3.5 billion
In the news this week, CEO of Adani Mining Jeyakumar Janakaraj said the Adani investment in the Queensland coal industry was close to tripling. He made the announcement stating that by the end of 2016, the Carmichael mine, which is situated in the Galilee Basin, could be valued at over $3 to $3.5 billion. This is a huge step up for Adani owing to their initial investment of $1 billion from Indian banks.
There is about 11.05 billion tonnes of JORC-certified coal resource in the mine’s footprint; and owing to the coal seams being close to the surface, extraction costs are a lot less than some other mines.
“extraction costs would fall below $US50 a tonne”
Adani have indicated that extraction costs would fall below $US50 a tonne, meaning the Carmichael mine would be one of the cheapest mines in the world to operate.
The Carmichael mine project is also being partially funded by the Queensland government who have tipped in $300 million to help accelerate the project, creating thousands of Galilee Basin mining jobs in Queensland.
“350km rail link and Abbot Point development”
Contracting companies have been lining up for a slice of the Carmichael mine and infrastructure development, with clear winners having been announced. POSCO engineering, a Korean based company has come on board as an equity partner, whose task is to construct the 350km-plus rail link from the mine to Abbot Point. POSCO will also take charge of constructing the port infrastructure.
Despite not having a mining lease, Adani expects to start constructing the rail link in a few short months.
Downer EDI win $2 billion contract
Australian-based engineering firm Downer EDI had received two Letters of Award in December 2013 from Adani. The details of which allowed Downer EDI to get stuck in to the $2 billion contract and build as well as operate the Carmichael mine.
Mining is still some way off with mid 2016 slated as the start date for mining. The first coal is expected to be delivered in 2017.
Mining jobs at Adani mine
Despite the length of time taken to develop the mine, employment opportunities are immense for Queenslanders. Coal mining jobs will be available for those who have the experience and right training qualifications.
The Standard 11 is the absolute minimum qualification needed to even be considered for an entry-level position. This is a requirement by law and for those who are looking to work at the mine for Downer EDI should look at attaining the Standard 11, which is valid for 5 years.
Other entry requirements could mean the job applicant be fit for work and possess a Coal Board Medical as well as prove they have undergone a drug and alcohol test.
Find out more about the Queensland mining induction qualification the Standard 11.
Get more information about the Coal Board Medical.
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