Adani Group Carmichael Coal Mine and Rail Project – Perspective and Regional Opportunities
Posted on September 29th, 2016
Media statements by supporters of the ADANI Carmichael Coal Mine and Rail/Port Project stating that the project will provide an “economic stimulus” for Rockhampton based business need to be assessed in the context of influencing factors such as the projects scaled commencement, location and access, appointment of principal contractors, supply chain considerations including capability, efficiency and reliability plus the proponents development program – once the project receives final approval with ongoing court challenges mooted!
Whilst there will undoubtedly be opportunity for a broad section of local industry -including consultancies, supply chain businesses and specialist labour to positively engage in the proposed project(s) once it has been finally approved and the proponents, ADANI Mining announce their overall development strategies.
All industry groups that are focusing their business strategy to ultimately register their capability for prospective Carmichael’ development “work packages” are urged to update their Business Capability Statements.
Throughout the period of mining development across the Bowen Basin, centres such as Emerald, Moranbah and to a larger scale Mackay positioned their industry to mining, both in respect to new developments and mine operations. Despite the recent downturn in resource developments many of these businesses remain operational today – necessarily refining their operations and demonstration operational efficiencies.
During this peak mining development period, which extended over several decades, Rockhampton based industry, with exceptions, took a more conservative view of mining activity focusing their attention to traditional clients and markets.
Background: The announcement by then Premier Anna Bligh in 2010 that the proposed Carmichael Coal Mine and Rail Project had been declared a State Significant Project generated extensive interest from supporters and environmentalists due to its scale, perceived economic benefits and environmental implications.
Located approximately 160km northwest of Clermont in what is referred to as the Galilee Basin the mine would be the first of many proposed within the basin.
Since its announcement in 2010 the proposal has gone through many changes until being formally approved at State level in May 2014 followed by Commonwealth approved on July 29th 2014 – both approvals came with extensive environmental and associated conditions.
There have been a number of legal challenges primarily associated with environmental and native title to the project and these continue today.
Project: The proponent, Adani Mining Pty Ltd proposes to construct a 60 million tonnes per annum open-cut and underground greenfield coal mine and a 189 kilometre (km) greenfield rail line connecting the mine to the existing Goonyella and Newlands rail system south of Moranbah.
The mine is located in the Galilee Basin and is predominantly situated within the Isaac Regional Council (IRC) Local Government Area. It is reported that the project which will require A$16.5 billion of investment, also includes the development of an airport, industrial area, workers accommodation village, five quarries and water supply infrastructure.
At full export capacity of 60 mtpa, the project is expected to contribute $929.6 million annually to the Mackay Region’s Gross Regional Product and $2.97 billion annually to the Queensland economy. The project is expected to create an estimated 2475 jobs during the construction phase and 3920 jobs during the operational phase. The project contributes to a key Queensland Government objective of realising the timely development of the Galilee Basin, while ensuring net community benefits and environmental objectives are maximised.
Project Size: Whilst the Central Queensland region has experienced significant mining activity for many decades with the development and operation of a proliferation of coal mines across the Bowen Basin, it is important to acknowledge the scale and magnitude of proposed mines within the Galilee Basin – including the Carmichael Mine which will be the first on many large scale developments.
The proposed Carmichael Mine is planned to contain six open-cut pits and five underground mines across an area of approximately 27,900 hectares. The mine site will cover an area of 44,700 ha, and is 50 kilometres in length.
Economic Development Manager