Adani to begin producing coal from Australian project in FY21

2017-05-16 17:00:00 Company,  International sxcoal.com

Indian conglomerate Adani Group plans to begin extracting coal from the $16.5 billion Carmichael project in Australia in 2020-21, PTI reported on May 14, citing Chairman Gautam Adani.


The group, which has interests from ports to power, would finalise by June an investment decision for the project, which has been delayed due to protests from environmental groups.


Adani expressed his group is not just investing in coal but also in renewable energy in Australia, seeking to develop 1,500 MW of solar projects by 2022.


It has signed pacts to build two solar farms, each with capacity of 100-200MW in Queensland and South Australia.


Adani said the company has scaled down the coal mine capacity in the first phase. Originally seen producing 60 million tons a year from six open-cut pits and five underground mines, a scaled-down first stage is now planned to produce 25 million tons a year of coal and will cost over USD 4 billion.


"We will begin work within months after getting final approval from the Australian government," he said.


Projections of a global glut of coal and prolonged low prices notwithstanding, Adani is pushing ahead with plans to build the mine that would produce thermal coal to generate electricity and operate for six decades.


"About 15 million tons of coal produced from the project (in the northern Australian state of Queensland) will be shipped to India for generating electricity," he said.


The group has for more than five years battled opposition from green groups, who insist any expansion of the port will cut into the Great Barrier Reef World Heritage Area. The port is to be used for exporting coal to India.


"A port already exists with capacity to handle coal from phase-one," he said adding a rail line will have to be built for transporting coal from the mines to the port.


The group has so far invested A$3.4 billion on the Abbot Point port and preparatory work for the Carmichael coal mine. It has applied for an Australian government agency loan to finance the railway line.


Adani said he is expecting Australian federal and state government nods for the coal project soon.


(Writing by Becky Du   Editing by Harry Huo)
For any questions, please contact us by inqury@fwenergy.com or +86-351-7219322.

Editors Recommendations

1 Coking coal market losing strength in Shanxi 2017-05-26

Coking coal market was on a downward trajectory in China's northern province of Shanxi, as buying interest from downstream sectors shrank amid production cuts ordered by environmental authorities.

2 Sichuan pledges to kick out 100 coal mines in 2017 2017-05-26

China's southwestern province Sichuan plans to shut down 100 mines with production capacity of 13 million tonnes per annum (Mtpa) this year, the local media reported on May 22 in reference with a prov

3 China biggest virtual power plant operated 2017-05-26

The first set of "Source-Grid-Load Smart Grid", built to distribute clean energy on a large scale, has been put into operation in China's eastern province of Jiangsu. This virtual power p

4 Thermal coal prices drop further at south China ports 2017-05-26

Tepid trades on thermal coal continued to bear down on prices of the power generation material at southern China ports, with southern traders mainly in a wait-and-see attitude. A trader f

5 Chinese coal mines' cost curve and profitability analysis in Apr 2017-05-26

The overall profitability at coal mines in China surveyed by sxcoal.com slightly reduced in April, mainly because sliding prices dented profits of thermal coal miners. Profit-making therm

6 An overview of Chinese coking coal import in Apr 2017-05-25

China imported a record high of 8.46 million tonnes of coking coal in April, surging 57.9% year on year, according to data from the General Administration of Customs (GAC) on May 23. The

7 China Coal Daily Track (May 25) 2017-05-25

Thermal coal Domestic market Large coal miners in Yuyang district in Yulin city, Shaanxi province, adjusted up slack coal prices by 10 yuan/t or so amid slightly increased trucks waiting

8 Henan to get major gas facility 2017-05-25

Sinopec, China's largest natural gas storage and logistics center, is expected to start operation in Henan province by the end of 2018, as the country pushes on with a drive to ease the gas shortage d

9 Baogang pushes on with steel expansion 2017-05-25

Steel giant Baogang Group is planning to integrate its overseas operations and expand its market share through the Belt and Road Initiative. The State-owned iron and steel company will se

10 China wind power maintenance industry embraces chances 2017-05-25

With the rapid rise of China's wind power generation, wind power maintenance industry is about to drive into the fast lane. It is estimated the wind power installed capacity will total 15

Most Read Articles

1 Global coal market seen in 16 Mt oversupply in 2017 2017-05-15

The global coal market is forecast to hit an oversupply of 16 million tonnes this year as production increase, Reuters reported on May 14, citing Noble Resources chief coal analyst. "Thos

2 Indonesia coal production seen to increase 5% this year and next 2017-05-15

Indonesia, the world's top thermal coal exporter, could increase production of the fuel used in power stations by 5% in 2017 and 2018, Reuters reported on May 14, citing the country's leading coal

3 Hebei admits more lapses in pollution, overcapacity fight 2017-05-16

China's Hebei province is not properly enforcing policies to cut pollution or reduce chronic overcapacity in major industrial sectors like steel and coal, Reuters reported, citing the environmental bu

4 China determined to push capacity-cut drive 2017-05-15

China is determined to gain some ground on its key battlefield - addressing industrial overcapacity, Xinhua reported. The phasing out of sub-standard production capacity will continue, es

5 Adani to begin producing coal from Australian project in FY21 2017-05-16

Indian conglomerate Adani Group plans to begin extracting coal from the $16.5 billion Carmichael project in Australia in 2020-21, PTI reported on May 14, citing ChairmanGautam Adani.

6 China, India surpass U.S. as most attractive renewables markets 2017-05-16

China and India have surpassed the United States to become the two most attractive countries for renewable energy investment, Reuters reported on May 16, citing a report by UK accountancy firm Ernst &

7 Beijing-Tianjin-Hebei area to totally ban coal burning 2017-05-17

Beijing-Tianjin-Hebei area, China's major high-tech and heavy industrial base, will speed up achieving "zero" coal-burning in this place, announced the Ministry of Environmental Protection (MEP) in a

8 India's coal output expects to boom temporarily 2017-05-17

A report by the Indian government indicates the country will double its coal output to 1.5 billion tonnes by 2020, Power Engineering reported on May 16. As the world's third largest coal

9 Colombia coal output up 3 pct in Q1 2017-05-17

Colombia's coal output increased 3% to 22.2 million tonnes in the first quarter of this year, compared with the same period in 2016, the National Mining Agency said in a statement on May 16.

10 China, India dominate coal ownership as some shun climate risks 2017-05-17

Investors in China and India increasingly dominate ownership of coal reserves amid campaigns for divestment in many rich nations to limit the risks from climate change, Reuters reported, citing a stud