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Adani says he will finance the construction of his controversial Carmichael Mine himself and that work will begin soon.
The mining giant said that a reduced mining and rail project would be 100% funded by Adani group resources.
Adani Mining Chief Executive Officer Lucas Dow made the announcement at the Bowen Basin Mining Club luncheon in Mackay, Queensland today.
It follows recent changes to simplify construction and reduce initial capital requirements for the project.
The mine was originally intended to be a $ 16.5 billion project, but will cost only $ 2 billion, according to the report. Townsville Newsletter.
"Our work over the last few months has resulted in the Adani Group approving the revised project plan that minimizes the risks badociated with the initial phase of the Carmichael Mine and Rail Project by adopting an badociated narrow gauge rail solution. at a reduced ramp-up volume for the mine, "Mr Dow said.
"This means we have minimized our execution risk and our first down payment. The refinement of the mine plan has kept operating costs to a minimum and ensured that the project remains in the top quartile of the overall cost curve. "
According to bulletinDow said work on the mine would begin first after state and federal governments approve management plans. The work on the railway was to begin at the beginning of the new year. The first coal experts would be produced in 2021.
Once considered Australia's largest coal mine, it would produce 60 million tonnes of coal per year. The reduced version is now expected to produce 27.5 million tonnes at its peak.
Initial production will be only 10 to 15 million tonnes, but will increase to 27.5 tonnes in 10 years.
A railway line serving the mine will also be reduced.
Earlier this year, Adani abandoned plans for a standard 388-kilometer rail line and will instead build a 200-kilometer line connecting the existing Aurizon rail network to Goonyella and Newlands. That will cut the cost by more than half, from $ 2.5 billion to $ 1 billion.
Dow said the project would create 1,500 direct jobs during the initial phase of acceleration and construction of mining and rail projects.
Townsville and Rockhampton were still to be the main job markets, but workers would also be hired in other regions.
The company had to find its own financing for the project after banks abroad and in Australia moved away from coal export projects in the region or adopted policies banning funding for the Adani mine.
Earlier this year, railroad operator Aurizon gave up its planned construction of a railway line connected to the mine, withdrawing its $ 5 billion government-funded loan application from the government. Northern Australia Infrastructure Facility (NAIF).
This decision comes after Adani was denied a $ 1 billion loan by the NAIF for the construction of her own railway line, after the Queensland government vetoed her before parliamentary elections.
The Carmichael mine had already been delayed due to litigation by environmental groups and the need to amend the Native Title Act to legitimize an Aboriginal land use agreement it had signed.
Today's announcement is not the first time Adani has announced plans to start construction.
Jeyakumar Janakaraj, executive director of Adani Australia, previously said that construction of the mine was to begin in the coming weeks in October 2017.
This year, it was announced that the pre-construction of the project was to begin in September.
The Adani mine has been hotly debated because of its potential impact on climate change and Australia's Great Barrier Reef, as well as the impacts that an unlimited water license will have on farmers and farmers. allegations regarding the Company's environmental history in India and its financial arrangements.
Even the conservative shock Alan Jones launched a campaign last year to oppose the mine.
Kelly O'Shanbady, chief executive of the Australian Conservation Foundation, said Australia's elected officials should stand with millions of people in the country who want the mine closed.
"Adani's announcement does not mean that this dangerous coal mine is an established fact," she said. "There are many regulatory hurdles, approvals and management plans to be removed. Adani has yet to sign contracts, secure access to rail lines and unacceptably abolish the aboriginal title.
"Adani is still under investigation by the Queensland government for supposedly dug illegal holes in underground aquifers. And the government is suing Adani for polluting the Great Barrier Reef with polluted coal water.
"The Stop Adani movement will fight this proposed mine at every stage of the process. There is too much at stake
"Millions of Australia have come forward and voted against this climate that destroys mine. They will continue until we stop Adani. It is time for our elected representative to be with them.
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