On Thursday, The Adani group struck the first coal from its Carmichael, Australia project and will commence shipping to its customers as scheduled. With this, the project will not only boost the economic probabilities of the hitherto barren Australian outback but also serve Indian power plants with a cheap coal supply.
Earlier, The project had encountered protests from a sector of the population with multiple banks even denying to fund it. Carmichael coal will contribute to Adani Group’s burgeoning energy portfolio that is outlined to generate a sustainable energy mix, including thermal power, solar power, wind power and gas.
The group moved ahead with the project which entailed the construction of a brand new railway line connecting an Australian port to the mine located 300 kilometres away in Queensland, even after the project had faced protests. The group had proposed the project in 2010 with an investment of A$16.5 billion but later ascended it down to A$2 billion. The project will deliver 10 million tonnes of coal per year. This was one of the greatest investments by an Indian company in Australia.
The CEO of Adani's Australian company, Bravus Mining and Resources, David Boshoff, said it was an inspiring day for over 2,600 people on the project. “Throughout the last two years of construction and during the many years when we fought to secure our approvals, our people have put their hearts and souls into this project – it is wonderful that we have now struck coal,” he stated.
Further, he said, “Nearly two years ago today we received our final approvals to develop the Carmichael mine and rail project. We have faced many hurdles along the way, but thanks to the hard work and perseverance of our team, we have now reached the coal seams. Bravus was on track to export the first coal as promised, in 2021."
“We’re on track to export the first coal this year, and despite reaching this significant milestone, we will not take our eyes off our larger goal of getting coal to market,” he said.
India will be a support customer for the Carmichael mine and is the fourth largest global user of electricity as well as the source of the biggest growth in the global energy market. Bravus had already grasped the market for the 10 million tonnes per annum of coal-generated at the Carmichael Mine. “The coal will be sold at index pricing and we will not be engaging in transfer pricing practices, which means that all of our taxes and royalties will be paid here in Australia. India gets the energy they need and Australia gets the jobs and economic benefits in the process,” he said.
Carmichael coal will provide to Adani Group’s burgeoning energy portfolio that is planned to create a sustainable energy mix, incorporating thermal power, solar power, wind power and gas.
Boshoff stated the Adani Group had tightened its position as the world’s largest solar company, following last month’s declaration that Adani Green Energy Ltd (AGEL) has procured SB Energy Holdings Ltd, which will see AGEL obtain a total renewable energy capacity of 24.3GW.