Adani group plans Queensland biggest coal mine

Monday, 20 Feb 2012

An Indian conglomerate is planning to build Queensland's biggest coal mine, west of Rockhampton in the state's central region, including a new town, runway, railway and port facilities.

The Adani Group has proposed a new open cut and underground mine, mostly on the Moray Downs cattle station, about 100 kilometres north of Emerald.

The cost of construction is expected to be at least AUD 6 billion and the mine would produce about 60 million tonnes per year, with a mine life of more than a century.

If the project goes ahead, Adani said it would be the largest investment by an Indian company in Australia.

The company is also planning to establish a new town to deal with the Carmichael mine's remote location.

It said it would also build an airstrip for fly in fly out workers, along with new railway and port facilities at either Abbot Point or Hay Point.

Adani said that exports would predominantly service the Indian domestic power market.

Queensland Mining Minister Stirling Hinchliffe said that he would prefer the company to use locally sourced labour. He said that "I have given a very clear message to the companies involved, including Mr Adani directly, that we have a very high expectation about the role that Queenslanders will play in these projects.”

Mr Hinchliffe also says there is not sufficient infrastructure in central Queensland's Galilee Basin to cope with the major new mining project.

(Sourced from www.abc.net.au)

India's Lanco finalises Australia's Griffin coal purchase

Fri Mar 4, 2011 5:54am GMT

PERTH, March 4 (Reuters) - India's Lanco Infratech has finalized its acquisition of Australia's Griffin Coal assets for A$750 million ($760 million), in what it said was the largest investment in Australia by an Indian company.

"We are focused on growing the Griffin coal business, and further developing the mining and infrastructure (rail and port) facilities in the region," Lanco Chairman L. Madhusudan Rao said on Friday.

Previous estimates has put the value of the deal at $800 million to $850 million.

Western Australia-based Griffin Coal's assets included thermal coal mines with a production of more than 4 million tonnes per annum, which Lanco plans to boost almost four-fold to over 15 million tonnes per annum, in addition to adding rail linkages, and expanding facilities at Bunbury port.

The coal from the thermal coal mines will feed Lanco's rapidly expanding power plants-- the company plans to expand to 9,500 MW by 2014 from 2,100 MW at present, and is developing eight new projects, with a combined capacity of about 10,500 MW.

The assets had attracted bidders like Reliance Power , Adani Power and GMR from India, apart from interested parties from Australia and China.

The company has said it will seek more acquisitions in Australia, Africa and Indonesia. ($1 = 0.986 Australian Dollars) (Reporting by Rebekah Kebede; Editing by Ed Davies,sourced:Thomson Reuters)

Tags : Reliance Power, Adani Power, GMR, raw mat