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 China thermal coal supply tension remains as rail wagons hard to get 2017-09-21

Despite several official directives issued earlier urging coal miners to expand production, supply of thermal coal remained tight in China, with traders reporting difficulties in securing railway capa

2 China thermal coal price soars high, beating market expectations 2017-09-21

Prices of thermal coal, used mainly for power generation, continued to fly high in September, after recovering from a brief decline that ended in late August, beating market expectations of a weake

3 China major power generators' coal stocks sink below 10-Mt mark 2017-09-21

Combined coal stocks of China's six major coastal power enterprises dropped below 10 million tonnes on September 19, the first time in more than five months. The stocks level,

4 China coal-to-ethanol makers should caution overly optimistic on ethanol gasoline 2017-09-20

Experts' remarks may pour cold water on China's coal chemical runners who had been immersed in joy since 15 central ministerial departments issued a document that the country will vigorously promote

5 Inner Mongolia thermal coal prices edged up in early Sep 2017-09-20

Thermal coal prices increase slightly in northern China's Inner Mongolia early this month, said the regional development and reform commission. In the first ten days of September, thermal

6 China thermal coal prices may hard to rise greatly in Q4 on multiple factors 2017-09-20

Prices of thermal coal, used mainly for power generation, are not likely to spike sharply in China in the fourth quarter, as utilities have started to restock early in September to avoid supply crunch

7 Coal consumption expected to make up 1/5 of all energy by 2040, IEA 2017-09-20

Coal consumption is estimated to constitute 22% of all energy by 2040, decreasing from present 27%, said International Energy Agency (IEA) in a report recently. IEA also forecast coal wil

8 China coke market see signs of slowdown after 9th price hike 2017-09-20

China's met. coke market has kept brisk for nearly three months with nine price hikes totaling 660 yuan/t since late June. However, the buoyancy seemed have weakened this week. Market sou

9 Coking coal supply shortage eases in Shanxi 2017-09-19

Supply tension of coking coal, one coke making material, was seen easing in northern China's Shanxi province, market sources said, mainly due to waning demand from downstream coke and steel makers.

10 Where is China's coking coal market going? 2017-09-19

China's coking coal futures market had been in an upward trend for months but suddenly fell off a cliff on September 15, and continued dropping the next trading day. On September

Most Read Articles

1 Mongolian miners plan coal output hikes as China demand rises 2017-09-12

Mongolia's coal miners are looking to ramp up production to meet growing demand from top buyer China, but longstanding transportation issues continue to hold back sales, Reuters reported on September

2 China coking coal on track for worst day since contract launch 2017-09-15

China's coking coal futures plunged almost 8% in afternoon trading on September 15 and were on track for their biggest one day drop since the contract's launch in 2013 on chart-based selling amid worr

3 Shanxi to shut first batch of coal-fired power capacity of 840 MW this yr 2017-09-11

Coal-rich Shanxi province publicized the first batch of coal-fired power plants to be shut in 2017, totaling 840 MW, said an official notice. The move, involving five power companies, is

4 Coal supply for power plants to improve over 15-20 days 2017-09-11

In view of current coal shortage in the power plants, the supply of the fossil fuel would improve over the next 15-20 days, IANS reported on September 9, citing the Union Railways and Coal minister Pi

5 China iron ore, steel rebound after five-day slide 2017-09-12

Steel and iron ore futures in China advanced on September 12, regaining some lost ground after a five-day retreat, with demand seen remaining intact in the world's top consumer of both commodities.

6 China spends big to ensure clean winter heating in N. China 2017-09-11

Chinese central and local governments are committed to huge spending in the coming three years to ensure clean winter heating in 12 cities in northern China. Those cities, including Shiji

7 Northeast China's largest solar power farm comes online 2017-09-12

A 100-MW floating photovoltaic (PV) power project was reported to be connected to gird recently in Zhuanghe city of Liaoning province, marking the largest solar power plant in northeastern China ha

8 24 coal cos ranked on list of China's top 500 companies in 2017 2017-09-12

A total of 24 coal enterprises are ranked on the list of China's top 500 companies this year, two less than a year ago, showed the list on September 10 published by China Enterprise Confederation (CEC

9 China releases guideline to support reform of coal-rich province 2017-09-12

China's State Council made public a guideline to support the economic transformation of coal-rich Shanxi province, Xinhua News Agency reported on September 12. By 2020, the share of coal

10 Inner Mongolia thermal coal prices edge up in Aug 2017-09-12

Thermal coal prices increase slightly in northern China's Inner Mongolia last month, said the regional development and reform commission. In August, thermal coal mine-mouth prices average