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The Indian energy giant Adani finally supported the controversial Carmichael mine, worth $ 2 billion, and will finance the project itself. Construction work should begin before Christmas.
After eight years of litigation by environmental activists and delays in approvals, Adani Australia's executive director, Lucas Dow, said Thursday that the company had finally reached a financial close of the project, which could start exporting coal by the end of 2020.
This decision could be a catalyst for the opening of the Galilee Basin border in central Queensland – other major coal mines are expected to follow, including the two GVK / Hanbad Coal mines and the recently approved project of 6 , $ 5 billion China Stone from MacMines. It will also be well received by Morrison government pro-coal activists, including Natural Resources Minister Matt Canavan.
The project will also put pressure on federal Labor leader Bill Shorten and Queensland Labor Premier Annastacia Palaszczuk, both less enthusiastic about the project, ahead of next year's federal election.
Last month, Adani announced its intention to reduce the size and reach of the Carmichael mine from 60 million tonnes of mega mines by 60 million tonnes to 10 to 15 million tonnes more manageable per year, with the reduction potential up to 27 million tons per year.
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Adani, who has already spent $ 3.3 billion in Australia, said the reduced capital cost of the project would be about $ 2 billion. They had discussed with international banks to finance the project, but Dow said it was no longer necessary.
He added that the "refining" of the mine plan had reduced operating costs to a minimum and that the construction and operation of the thermal coal mine would begin now.
"We pulled the trigger, we have the funds and we are ready to go," Dow said in an interview with The Australian Financial Review.
"We have been waiting a long time and we are obviously very excited to announce it so that we can continue and create jobs for the people who have been with us all this time. desperate to see these jobs come in the northern part of Queensland ".
Mr. Dow said the project, which no longer requires final management plans approved by state and federal governments, would be funded by the finances of the parent company of the Adani group rather than externally by a bank.
"It sounds like Rio Tinto or BHP financing the project, coming from the treasury group and securing it," he said.
When asked if the Adani group had to borrow money from international banks to help finance projects, including the Carmichael mine, Mr Dow said he "would not want to not to speculate ".
"It's a cash business for the group, the important part for us is the Carmichael mine and the railroad is fully funded and we are able to continue, we are really in control of our own destiny."
Dow, a former BHP executive, said any future expansion of the mine and rail to 27 million tonnes would be funded by profits from the initial production of the mine.
Environmental groups, fossil fuel organizations and even some politicians have expressed skepticism about the implementation of the Carmichael project, as delays have been delayed in recent years.
Dow said the announcement on Tuesday should dispel any doubt about the Carmichael project, saying it remains in the top quartile of the global cost curve.
Adani said the Carmichael project would create more than 1,500 direct jobs in mining and rail projects during the initial commissioning and construction phase and support thousands of additional indirect jobs. This is far from the 10,000 jobs recently announced for the project.
Adani announced in September that it would give up its plans to build its own 388 km normal track railway line up to Abbot Point, but it will now build a narrow gauge line of 200 km that will join the existing Aurizon billion coal network.
The Adani railway line leading to the Galilee Basin will also pave the way for other projects, including the GVK / Hanbad Project and Clive Palmer's Waratah Coal Project, which will be operational.
She asked Aurizon to access her regulated coal network in central Queensland. The new 200 km rail link will have the capacity planned for 27 million tonnes or up to 40 million tonnes along the track if necessary, and depending on market conditions.
The Palaszczuk government has suddenly announced during last year's election campaign that it would not support a federal infrastructure loan for Northern Australia, which is expected to be the largest in the country. worth $ 5 billion, awarded to the Adani mine, claiming that it deserved no taxpayer funding. This change was seen as a way to secure Green's preferences in a series of Brisbane seats. In November, the Palaszczuk government was reinstated for a second term.
Mr. Shorten was a strong supporter of the Adani project, based on the jobs created by the project throughout the Queensland region. But he has given in over the last few months, using the same lines as the Palaszczuk government regarding the lack of taxpayer funding for the mine.
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