On Thursday, the Adani group hit the first coal from its Carmichael, Australia project, and will begin exporting to customers on time. The initiative will not only improve the economic prospects of the hitherto desolate Australian outback but will also assist Indian power plants in obtaining low-cost coal.
A part of the populace had objected to the project, and numerous banks had refused to support it. The business, on the other hand, moved forward with the project, which included building a fresh new railway connection connecting an Australian port to the mine, which is 300 kilometers away in Queensland. The project was first proposed in 2010 with a budget of A$16.5 billion, however, it was eventually reduced to A$2 billion. The project is expected to produce 10 million tonnes of coal annually. This was one of the largest investments made in Australia by an Indian corporation.
The CEO of Adani’s Australian company, Bravus Mining, and Resources, David Boshoff, said it was an exciting day for over 2,600 people on the project. “Throughout the last two years of construction and during the many years when we fought to secure our approvals, our people have put their hearts and souls into this project – it is wonderful that we have now struck coal,” he said.
“Nearly two years ago today we received our final approvals to develop the Carmichael mine and rail project. We have faced many hurdles along the way, but thanks to the hard work and perseverance of our team, we have now reached the coal seams. Bravus was on track to export first coal as promised, in 2021.”
“We’re on track to export the first coal this year, and despite reaching this significant milestone, we will not take our eyes off our larger goal of getting coal to market,” he said.
India will be the Carmichael mine’s first customer, as it is the world’s fourth-largest electricity user and the source of the fastest-growing global energy demand. Bravus had previously secured a market for the Carmichael Mine’s 10 million tonnes of coal per year.
Carmichael coal will be part of Adani Group’s growing energy portfolio, which includes thermal power, solar power, wind power, and gas to build a sustainable energy mix.
Following last month’s news that Adani Green Energy Ltd (AGEL) had purchased SB Energy Holdings Ltd, which will give AGEL a total renewable energy capacity of 24.3GW, Boshoff claimed the Adani Group had cemented its position as the world’s largest solar enterprise. “The 24.3 GW would be enough electricity to power over 8.5 million houses, or nearly all of Australia’s (*9.2 million) households per year.”
The project’s coal will be supplied to India’s power plants, which require high-quality coal. As part of its transition to sustainable energy initiatives, the company is also building renewable power projects in Australia.