Indian energy giant Adani finally pulled out a $ 2 billion controversial Carmichael mine and will finance the project itself, the construction of which should begin before Christmas.
After eight years of legal challenges from environmental activists and delayed approval, Adani Australia's CEO, Lucas Dow, said on Thursday that the company had finally reached the financial end of a project that could begin exporting coal to the end of 2020.
The decision could be a catalyst for the opening of the Galilee border in central Queensland – with other large coal mines, which are expected to have two more mines and a recently approved $ 6.7 billion China Stone project, MacMines. This will also be welcomed by coalition activists in the Morrison government, including federal minister of resources Matt Canavan.
The project also puts pressure on federal Labor Leader Bill Shorten and Labor Queensland Annastacia Palaszczuk – who were both less excited about the project – next year's federal election.
Last month, Adani announced it would change the scope and scope of the Carmichael mine, removing it from a $ 60.5 million mega-mine at $ 16.5 billion, up from 10 to 15 million tonnes a year, with the option of extending to 27 million tons per year.
Adani, which already spent $ 3.3 billion in Australia, said the capital cost of the project with limited access would be about $ 2 billion. They talked to international banks about project financing, but Mr. Dow said it was no longer needed.
He said that "sharpening" the mining plan kept operating costs to a minimum, and the construction and operation of the coal-mining mines began.
"We launched the trigger and we have the money and we are ready to go," Dow said in an interview Australian Financial Overview.
"It's been a long time ago, and we are, of course, very excited about letting us know that we can continue to do this and provide jobs to the people who have been standing next to us all the time." "I'm desperate to the north of Queensland."
Dow said that the project, which now only needs final management plans signed by state and federal governments, will be financed by the financial resources of the Adani Group rather than externally.
"It's similar to the Rio Tinto or BHP project, which comes from the Treasury, which is secured," he said.
Asked if Adani Group had to borrow money from international banks to help fund projects including the Carmichael mine, Dow said he "does not want to speculate."
"This is a matter for a group cashier. Carmichael mine is an important part of us and the railways are fully funded, and we are able to get on with it." We are very masters of our own destiny. "
Mr. Dow, former BHP Executive Director, said that any further increase in the mine and rail to 27 million tonnes would be funded by the profit from the initial mine production.
Environmental groups, fossil fuel organizations and even some politicians have expressed skepticism about whether the Carmichael project will retreat, given that deadlines have been delayed over the past few years.
Mr Dow said that the announcement on Tuesday should remove any doubt that the Carmichael project is blaming and says it remains a global cost curve in the first quarter.
Adani said that the Carmichael project will bring more than 1,500 direct jobs in mine and rail projects during the initial construction and construction phase and will support thousands of other indirect jobs. This is far from the 10,000 jobs that have been offered in the recent incarnations.
Adani announced in September that it will abandon plans to build its own 388 km of standard railway line to Abbot Point, but instead build a 200-kilometer narrow gauge track linking Aurizon's existing coal network – a decision that saved her $ 1.5 billion.
The Adani railway line to Galilee also opens up other projects, including GVK / Hancock and Clive Palmer Waratah Coal.
She applied to Aurizon to gain access to a regulated coal network in central Queensland. The new 200-kilometer rail line will have a planned capacity of 27 million tonnes or up to 40 million tonnes per track, if required, and depending on market conditions.
The Palaszczuk government suddenly announced during the last election campaign that it would not support a $ 5 billion federal loan for the Adani mine from the $ 5 billion Northern Australia Infrastructure Fund, which does not deserve any taxpayer financing. This step has been seen as a playground to secure green preferences in the Brisbane seat chain. In November, the Palaszczuk government was returned to a second term of office.
Mr. Shorten has been a strong advocate of the Adani project on the basis of jobs he created in Queensland. In recent months, however, in recent months, as well as the Palaszczuk governments, it has been argued that no mine financing will be paid by taxpayers.