Work is well underway towards completion of Adani Mining’s Carmichael Mine site, west of Rockhampton, Queensland.
Construction of the project is continuing with strict measures in place to manage the risk of the COVID-19 virus.
As of mid-2020, more than $1b in contracts had been signed for the construction of the Carmichael Mine and Rail project, with the company generating up to 1500 direct jobs at the peak of construction and supporting thousands of indirect jobs.
Adani Australia has partnered with many local businesses for the mine development, including Townsville’s Mendi Group, which is carrying out onsite civil engineering, and the Wagner Group, which is building a quarry to support operations.
The company’s excavator and mine trucks have been busy at the open cut pit to remove the layers of overburden above the coal seams.
Adani Mining CEO David Boshoff said work to remove the rock, known as the box-cut, was a significant milestone to have ticked off on the construction schedule.
“We are on track to export first coal in 2021,” Mr Boshoff said.
“It’s great to see our big new gear, the Liebherr R 996B excavator and CAT 796 dump trucks, hard at work.
“In time they will reach the coal seam, after which we will be excavating coal as we need, to remove around 4m3 of rock for every tonne of coal we mine.
“As we move into this next phase of construction with more heavy machinery operating across the site, the safety of our people and contractors is my absolute priority.”
There are now more than 700 people working on the mine and rail project construction and numbers are growing as more contractors arrive to build the Coal Handling Plant and to work on the railway. “The expansion of our mine accommodation to 400 beds is complete to cater for the additional workforce, and we will soon be able to accommodate another 1200 people in our temporary rail accommodation villages,” Mr Boshoff said.
“We remain on track to deliver 1500 direct and 6750 indirect jobs.”
Contracts
Adani awarded its largest construction contract for the Carmichael Project to date to Queensland-based BMD, taking the total value of contracts awarded to over $1b.
BMD had been awarded a $350m-plus contract to deliver civil construction works for the Carmichael Rail Network.
BMD has operated in North Queensland for more than 25 years, with Townsville forming its regional base for delivery of this contract.
The civil construction of the rail network is being delivered in two parts – BMD will complete one section and Martinus the other civil rail contract partner.
The civil components of the BMD contract include the delivery of earthworks, drainage, bridges, rail camp construction and associated road upgrades.
Meanwhile, Mackay-based G&S Engineering, a wholly owned subsidiary of DRA Global Ltd, will build Adani’s Coal Handling Plant, having been awarded a contract to deliver the project.
G&S Engineering is a leading provider of services to the Australian resources sector, having completed similar work for other coal mines across the country.
DRA will carry out the design, engineering and construction of the Plant, which is expected to create about 200 jobs and deliver an economic boost to Mackay and regional Queensland.
DRA Global CEO Andrew Naude said the company’s use of innovative best practice technology would help the Carmichael project to achieve its targets.
“This is an important project that is supported by the Queensland Government, has all of its environmental approvals and is one of the largest employment-creators in regional Queensland,” Mr Naude said.
Mackay Regional Council Mayor Greg Williamson praised Adani for maintaining its production timeline and staying true to its local jobs commitment.
“There is no doubt that our expertise in engineering support for the resources sector is second to none in Australia, and G&S have always been at the leading edge of that expertise,” Cr Williamson said.
“This work will boost our regional economy post COVID and is the very reason we have supported Adani.”
Production
The Carmichael Mine will produce 10mt of high-quality thermal coal per annum, which will be used to generate affordable and reliable electricity for communities in India and South-East Asia.
The Project’s low cost profile, such as its 4:1 strip ratio, the quality of the resource, and forecast demand from its target markets of India and South-East Asia, are a good sign of the project’s economic strength.
“We’re committed to using conventional truck and excavator mining techniques across the project,” Mr Boshoff said.
“Our first five mining trucks and excavator have arrived on site and are operational and the assembly of our second excavator will commence in the coming weeks.
“We will also add more than a dozen mining trucks to our fleet over the coming months.
“The trucks will be assembled in Mackay, with each taking a team of about 40 men and women up to 10 weeks to put together before they are transported more than 300km to site.”
The company’s large equipment, including mining excavators, are being assembled on-site.
As tall as a six-storey building and longer than a cricket pitch, the first excavator was built onsite in eight weeks.
Skilled tradespeople in the central Queensland city of Mackay have assembled the mining trucks, which will be used during construction. When the mine is operational, each truck will cart up to 320t of coal from the pit.
Construction on the Carmichael Mine started in June 2019 after Adani received its final approvals and confirmation its plan complied with all regulatory conditions set by the Australian and Queensland Governments.
The Carmichael Mine is located in the North Galilee Basin, more than 300km from the Queensland coastline and about 160km north-west of Clermont in regional Queensland.
Once construction is complete, the Carmichael Mine will be one of 125 coal mines in Australia.
In its first stage the mine will produce 10mt of coal per annum.
The mine is comparable in capacity to existing mines in NSW’s Hunter Valley and Queensland’s Bowen Basin.
Coal will be transported to Abbot Point Port via a 200km rail line and existing rail infrastructure, the same way other Queensland coal mines have done safely and responsibly for the past 30 years.
Mr Boshoff said the Carmichael Mine, through mining taxes and royalties, will generate billions of dollars for government in its first 30 years of operation.
“This money will help to build new schools, hospitals and roads for Queensland,” he said.