Downer EDI Limited chosen as lead contractor to develop Adani’s Carmichael mine in the Galilee Basin

Downer EDI Limited (Downer) today announced it had received two Letters of Award from Adani Mining Pty Ltd (Adani) advising it would enter into contracts for the provision of mining services and the construction of mine infrastructure at the Carmichael Coal Mine in the Galilee Basin in Central Queensland.

The $2 billion contract centres around the five-year mining services contract, with two additional one-year options.

Downer will be providing these services to the Carmichael;

standard management and mine operations
drilling and blasting; and
load and haul of waste and coal

Under the proposed mine infrastructure contract, Downer will look after engineering, procurement and construction of on-site and civil works.

Both Letters of Award which make up the contract are subject to both parties executing binding contracts which would be followed by pre-production and planning in early 2015.

It’s thought that the construction of the Carmichael mine infrastructure will start around Sept 2015. Recent reports received by iMINCO indicate that mining will start around a year later with first coal reaching Abbot Point in 2017.

About the Carmichael Mine

The Adani Carmichael mine will generate massive export opportunities for Queensland. It will create around 10,000 mining jobs, $22 billion in taxes and royalties for the Queensland government. The proceeds of these taxes are likely to be invested back into services across Queensland.

A Downer spokesman said the the partnership with Downer reflects the clear confidence that global companies like Adani have in developing billion-dollar projects in Australia.

“first coal in 2017”

An Adani spokesman said in selecting Downer as the mining services contractor, Adani are very excited and confident that they are well placed to meet their targets of first coal in 2017.

Adani’s mine, rail and port projects form the foundation for the Carmichael mine development, which is situated near Clermont.

The isolation and vast distance from the coast to the mine (some 350 kilometres) has always been a challenge for Adani, however with POSCO engaged to develop the Carmichael and North Galilee Basin Rail which will open up the basin by linking the mine to the port of Abbot Point.

With the rail link constructed, the Adani owned Terminal One and soon to be constructed Terminal Zero at Abbot Point will complete the project and allow coal to flow through from the mine with ease.

Other indications the Carmichael mine is forging ahead at full steam is the news in November 2014 that RCR announced it has established Moray Power Pty Ltd, (“Moray Power”�) to develop the Carmichael mine power station on behalf of the Adani Group.

The Chief Executive Officer of Downer, Grant Fenn, announced to the media that the Adani mining services contract is possibly one of the largest of its type signed in Australia in a few years.