Make Kitco Your Homepage

A $1.38B Thermal Coal Mine Gets Greenlight

Kitco News

Adani's Carmichael Mine in Australia was given regulatory permission by the Queensland Government's Department of Environment and Science to start construction, the company announced in a news release today.

The Carmichael Mine is an open cut thermal coal mine in the Galilee Basin. It will produce 10 million tonnes of coal per annum. The coal will be transported to Abbot Point Port via a 200km rail line. In a news report from December, company officials estimated the cost to build the mine at about A$2 billion (US$1.38B).

Adani CEO Lucas Dow said the project will deliver 1,500 direct and 6,750 indirect jobs during ramp up and construction. Adani said the regulatory phase of the project took two years to complete.

The mine was fought by environmental groups.

"Burning coal is the key driver of climate change. Nothing has changed about the science, or what's at stake for the Great Barrier Reef, Queensland's water resources and the rights of Traditional Owners to say 'no'," said Peter McCallum, coordinator of Mackay Conservation Group.

Now that permissions have been finalized, Dow said hiring and construction are next.

"Over the coming days preparatory activities such as finalizing contracts, mobilizing equipment, recruitment and completing inductions will continue," said Dow.

"These preparatory actions will enable us to then start construction activities including fencing, bridge and road upgrades, water management and civil earthworks on the mine site. The level of construction activity will then steadily increase over the coming weeks."

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News