Adani to finance Carmichael mine project in Australia through internal resources

Mumbai: Adani Mining’s Carmichael mine and rail project will be 100% financed through the Adani Group’s resources, Adani Mining CEO Lucas Dow announced in Central Queensland today. The announcement was made to community leaders, mining industry contractors and suppliers at the Bowen Basin Mining Club luncheon in Mackay, regional Queensland and follows recent changes to simplify construction and reduce the initial capital requirements for the Carmichael Project.

Adani Mining CEO Lucas Dow, said construction and operation of the mine will now begin. “Our work in recent months has culminated in Adani Group’s approval of the revised project plan that de-risks the initial stage of the Carmichael mine and rail project by adopting a narrow gauge rail solution combined with a reduced ramp up volume for the mine,” Mr Dow said.

”This means we’ve minimized our execution risk and initial capital outlay. The sharpening of the mine plan has kept operating costs to a minimum and ensures the project remains within the first quartile of the global cost curve. All coal produced in the initial ramp up phase will be consumed by the Adani Group’s captive requirements”.

“We will now begin developing a smaller open cut mine comparable to many other Queensland coal mines and will ramp up production over time to 27.5mtpa,” Mr Dow  said. “The construction for the shorter narrow gauge rail line will also begin to match the production schedule. “We have already invested $3.3 billion in Adani’s Australian businesses, which is a clear demonstration of our capacity to deliver a financing solution for the revised scope of the mine and rail project.