The Adani group mined the first coal from its Carmichael, Australia project on Thursday and will begin shipping to customers on schedule
[avatar user=”Shraddha” size=”thumbnail” align=”left”]By Shraddha Srivastava[/avatar]
New Delhi. The Adani group mined the first coal from its Carmichael, Australia project on Thursday and will begin shipping to customers on schedule. With this, the project will not only improve the economic prospects of the hitherto arid Australian outback, but will also help Indian power plants to source cheap coal.
The project had faced protests from a sector of the population and several banks had even refused to finance it. However, the group went ahead with the project which included the construction of a new railway line connecting an Australian port to the mine, located 300 kilometers away in Queensland. The group had planned the project in 2010 with an investment of 16.5 billion Australian dollars, but later reduced it to 2 billion Australian dollars. The project will produce 10 million tons of coal per year. This was one of the largest investments by an Indian company in Australia.
The CEO of Adani’s Australian company, Bravus Mining and Resources, David Boshoff, said it was an exciting day for more than 2,600 people on the project. “Throughout the last two years of construction and through the many years in which we have fought to secure our approvals, our people have put their heart and soul into this project; It’s wonderful that now we have found charcoal, ”he said.
“Today, almost two years ago, we received our final approvals to develop the Carmichael mine and the rail project. We have faced many obstacles 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 are on track to export the first coal this year and despite reaching this important milestone, we will not look away from our broader goal of bringing coal to market,” he said.
India will be a core customer of the Carmichael mine and is the world’s fourth largest electricity user, as well as the source of the fastest growth in global energy demand. Bravus had already secured the market for the 10 million tonnes per year of coal produced at the Carmichael mine. “The coal will be sold at indexed prices and we will not engage in transfer pricing practices, which means that all of our taxes and royalties will be paid here in Australia. India gets the energy it needs and Australia gets the jobs and the economic benefits in the process, “he said.
Carmichael coal will contribute to the Adani Group’s growing energy portfolio, which is designed to create a sustainable energy mix, incorporating thermal energy, solar energy, wind energy and gas.
Boshoff said that Adani Group had secured its position as the world’s largest solar company, following last month’s announcement that Adani Green Energy Ltd (AGEL) acquired SB Energy Holdings Ltd, which will see AGEL reach full power capacity. 24.3GW renewable. “The 24.3 GW would be enough energy to power more than 8.5 million households, or nearly all Australian households (* 9.2 million) each year.”
“The Adani solar farm at Rugby Run in central Queensland is part of this portfolio, with a total capacity of 65 MW coming into the Queensland regional grid, which is equivalent to supplying power to some 27,500 households each year.”
“As a global company, we are preaching when it comes to delivering a sustainable energy mix,” Boshoff said in a statement.
The coal from the project will be sent to power plants in India, which requires high-quality coal. The group is also building renewable energy projects in Australia as part of its shift towards greener energy projects.