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 Weekly global coal market news summary (Nov 13-Nov 17) 2017-11-17

At least 15 states join global alliance to phase out coal by 2030 At least 15 countries have joined an international alliance to phase out coal from power generation before 2030, Reuters repo

2 China thermal coal supply to be sufficient in 2018, Fenwei 2017-11-17

China's thermal coal supply is assessed to remain generally adequate in 2018, as domestic advanced production capacity will be unleashed further, said Sarah Liu, vice president of Fenwei Energy Inform

3 China effective thermal coal capacity to rise 2pct in 2018, Fenwei 2017-11-17

China's effective thermal coal capacity is expected to rise 2% year on year to 3.07 billion tonnes in 2018, said Gao Yingjie, vice-general manager with Project Department of Fenwei Energy Information

4 China coal supply roughly in balance with demand, CNCA 2017-11-17

China's coal supply-demand relation is expected to stay in a basic balance, yet uncertainties including some periodic and structural supply tightness still remain, said Zhang Hong, deputy secretary ge

5 China coal market supply loosen and prices stabilize, NDRC official 2017-11-17

Prices of thermal coal are stabilizing toward a more reasonable level, as supply has loosened up since October, thanks to various measures taken by the government and efforts made by relevant parties,

6 China's NDRC maps out pricings for 2018 coal term contracts 2017-11-17

China's National Development and Reform Commission (NDRC) recently made clear of three pricing mechanisms for mid- and long-term contracts of power coal, in a bid to ensure supply and stabilize prices

7 Producers' low stock helps buffer price slump in China coke market 2017-11-17

After several price slumps since late September, Chinese coke producers finally can take a breath as the market starts to show a sign of strengthening after their stocks fall to low levels amid produc

8 China six coastal power cos' coal stocks remain high 2017-11-17

Combined coal stocks held by China's six leading power generators in southern and eastern coastal areas have been above 12 million tonnes for over two weeks, indicating measures taken by the govern

9 Price cuts extend in China's key coal production regions 2017-11-17

Under massive pressure Chinese miners reduced thermal coal prices in "the Three West Regions" including Shanxi, Shaanxi and Inner Mongolia, as utility buying interest saw little improvement.

10 China Shenhua Oct commercial coal output down 6.3 pct YoY 2017-11-17

China Shenhua Energy Co., Ltd, the listed arm of coal giant Shenhua Group, produced 23.8 million tonnes of commercial coal in October this year, rising 0.4% from the month-ago level but down 6.3% year

Most Read Articles

1 Inner Mongolia steel products prices edge down in Oct 2017-11-08

Northern China's Inner Mongolia witnessed its steel products prices slightly go downward month on month in October, showed data from the regional development and reform commission. But th

2 Tianjin closes over 9,000 polluting cos 2017-11-06

Tianjin in North China has closed 9,081 heavily-polluting companies this year, Xinhua reported, citing the municipal environmental protection bureau. The companies are among nearly 19,000

3 China DCE iron ore futures hits 2-wk top following steel rising 2017-11-06

Chinese iron ore futures climbed to their strongest level in almost two weeks on November 6, tracking firmer steel prices after China's top steel producing province Hebei beat its annual overcapacity

4 China's Shanxi reduces reliance on coal 2017-11-07

Shanxi, China's major coal-producing province, is trying to develop emerging industries such as mobile phone manufacturing to reduce its reliance on coal and transform its economy, Xinhua reported.

5 Is China's spot coal market rising up again? 2017-11-09

Coal prices rose silently last weekend in Yulin, Shaanxi province. On November 4, premium mixed coal prices were adjusted up by 10 yuan/t at Hanglaiwan mine; Shenshupan mine's slack coal prices also r

6 Yankuang 3Qs profit up 6.7 times 2017-11-07

Shandong-based coal giant Yankuang Group, parent of Yanzhou Coal Mining, Co., Ltd., earned a profit of 2.03 billion yuan ($306 million) in the first three quarters this year, up 6.7 times year on year

7 Weekly global coal market news summary (Nov 6-Nov 10) 2017-11-10

Mitsubishi, Sumitomo raise profit forecasts on strong coal prices Japanese trading houses Mitsubishi Corp and Sumitomo Corp on November 6 lifted their net profit estimates for the current financ

8 Hebei overshoots this yr's industrial capacity cut target 2017-11-06

Northern China's Hebei province has already met this year's industrial capacity reduction target, cutting over 46.2 million tonnes of iron and steel capacity, 10.5 million tonnes of coal and 8.08 mill

9 China coking coal market remains tepid on waning demand 2017-11-07

China's coking coal market remained tepid recently amid weakened demand from coking and steel industries, which were both ordered to cut production in a bid to improve air quality in the typical high-

10 Inner Mongolia thermal coal price ratchets up in Oct 2017-11-06

Thermal coal prices rose slightly in northern China's Inner Mongolia last month, the fourth consecutive monthly increase since July, said the regional development and reform commission recently.