Adani, Downer Ink Massive $1.6 Billion Deal for Carmichael Coal Mine
In one of the largest deals of its type, Adani Mining has awarded Downer EDI with a $1.6 billion contract for services at the Carmichael Coal Mine in Central Queensland.
Under the five-year deal, which includes two additional one-year options, Downer will provide mining services and construction of mine infrastructure for thermal coal mine, including statutory management and mine operations, drilling, blasting and load and haul of waste and coal.
Downer will also be responsible for the engineering procurement and construction of on-site infrastructure and preparatory civil works. Adani will provide the capital for the major fleet for the mining services contract.
"The Carmichael mine lies at the heart of these projects which will deliver vital export opportunities for Queensland, 10,000 jobs, $22 billion in taxes and royalties to be invested right back into frontline services across our State, and crucial work opportunities for small and medium sized businesses,” said Adani Australia country Head and CEO, Jeyakumar Janakaraj.
"This partnership with Downer reflects the clear confidence that tier one firms have in Adani's projects and we welcome the chance to work with such a respected, proven partner on this critically important task.”
The deal is the latest milestone in Adani’s transition from the approvals stage to the building phase of the company’s mine, rail and port projects.
"In selecting Downer as the mining services contractor, we are confident that not only we are well placed to meet our longstanding first coal guidance of 2017 but that we are one step closer to our goal of building a long-term future with Queensland," Janakaraj said.
Located in the Galilee Basin, the long awaited Carmichael project is expected to be the biggest coal mine in the world. Adani’s mine, rail and port projects will be Queensland’s first standard gauge line that will help open up the basin by linking the mine to the port of Abbot Point, and the existing Terminal One and soon be constructed Terminal Zero at Abbot Point.
"We're very much looking forward to working with Adani at the Carmichael Coal Mine, which is expected to become the largest thermal coal mine in Australia," Downer’s CEO Grant Fenn said.
Read Downer's press release here.