Adani to begin producing coal from Australian project in FY21

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

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.

Share this article
Connect with us

Editors Recommendations

1 Weekly China met. coke market analysis and forecast 2018-05-22

Two price increases were seen in China's coke market last week, with a 50 yuan/t hike at the beginning and another 100 yuan/t late the week. By far this month, coke prices have risen by a total of

2 China to import more gas from US 2018-05-22

China's natural gas imports, which currently account for more than 30% of domestic consumption, will continue to rise and boost Sino-US energy trade while changing the global market pattern, experts s

3 Chinese traders concerned about policy risks on domestic thermal coal price 2018-05-21

Chinese traders are worried that the red-hot domestic thermal coal market may cool down abruptly as signs have shown, according to market sources based at northern ports. A trader in Hebe

4 Weekly China coal market news summary (May 14 – May 18) 2018-05-18

China's May coal imports may stay stable from Apr China's coal imports in May are expected to stay stable from the level recorded in April this year, as relevant authorities seemed to be less

5 Shanxi coking coal market steady, some grades firm up 2018-05-18

Coking coal market remained stable in China's coal-rich Shanxi province at present, while some coal types seemed to have firmed up in some regions of the province, said market sources. Co

6 Chinese traders wary of thermal coal imports on high prices 2018-05-18

Chinese traders became more wary of thermal coal purchase from overseas market, sources said, as wide spread between offers and bids impeded trades and raised more concerns about the import market.

7 Big adjustments looming in China coal transport layout 2018-05-18

China's coal transport structure is set to undergo great changes, especially for destinations in Beijing, Tianjin and Hebei in the north, as the country fights a battle against air pollution.

8 China's Hebei province to remove some solar subsidies next year 2018-05-18

China's northern Hebei province will phase out subsidies paid to some newly-built solar power plants from January next year, an official from the local pricing bureau told Reuters on May 17, part of

9 China's top 3 provinces contribute 67.5% of raw coal output in Jan-Apr 2018-05-17

Northern China's Inner Mongolia, Shanxi and Shaanxi produced 67.5% of the country's total raw coal in the first four months, showed data from the National Bureau of Statistics (NBS). On M

10 Chinese authorities may ease coal import limits to curb growing prices, sources 2018-05-17

Chinese authorities are studying over preferential policies for coal imports directly supplying to utilities, Economic Information Daily reported recently, citing sources that familiar with the inform

Most Read Articles

1 China Apr raw coal output up 4.1pct YoY, NBS 2018-05-15

China produced 293.3 million tonnes of raw coal in April, an increase of 4.1% year on year, showed data from the National Bureau of Statistics (NBS) on May 15. Over January-April, raw coa

2 China thermal coal market faces downward risks in short run 2018-05-16

Despite unexpected price rallies amid current slack season, China's thermal coal market at Bohai-rim ports is still facing downward risks in the short term, given little improvement of demand from uti

3 N Korea intends to export coal to China after a diplomatic breakthrough with US 2018-05-16

Some North Korean traders were offering low-price coal to Chinese traders and have stored up a number of cargoes at North Korean ports, expecting to deliver them over the border when a diplomatic brea

4 India's thermal coal imports rise over 15% in Q1 2018-05-14

India's thermal coal imports rose by more than 15% in the first three months of 2018, with Indonesia accounting for about three-fifths of total supplies, according to vessel arrival data from Dubai-ba

5 China's May coal imports may stay stable from Apr 2018-05-15

China's coal imports in May are expected to stay stable from the level recorded in April this year, as relevant authorities seemed to be less strict in banning import coal following continuous price r

6 As temperatures soar, China coal traders bet on shortages 2018-05-17

China's thermal coal futures rose to a six-week high on May 16 as traders bet on a supply crunch as lower hydro power output and forecasts of a summer heat wave spurred expectations of rising demand f

7 China's top 3 provinces contribute 67.5% of raw coal output in Jan-Apr 2018-05-17

Northern China's Inner Mongolia, Shanxi and Shaanxi produced 67.5% of the country's total raw coal in the first four months, showed data from the National Bureau of Statistics (NBS). On M

8 Intensified environmental crackdown may cause new capacity cuts in China coke industry 2018-05-14

A new round of capacity cutback may stage in China's coke-making industry, as increasingly stringent environmental checks force producers to limit output. The move was led by Xuzhou

9 China Coal Daily Track (May 14) 2018-05-14

Thermal coal Domestic market Large mines in Shenmu and Fugu of Shaanxi reported marginal price rises of thermal coal amid low inventory and good sales, while some mines in Yuyang adjus

10 Australian thermal coal offers remain high, weakening its price advantage 2018-05-14

Price advantage of Australian thermal coal weakened against Chinese domestic cargoes, after miners kept raising their offers in anticipation of bullish market in the short run. Chinese do