ENGINEERING group Downer EDI has won a $2 billion contract for work on Adani Group’s controversial Carmichael Coal Mine project in Central Queensland.
The contract, which is set to last between five and seven years, will see Downer (DOW) build mine infrastructure and provide services including drilling and blasting and coal and waste haulage to and from the mine.
The $10 billion dollar Carmichael mine, which has been a target for environmentalists, will be one of the biggest coal mines in the world.
Under the mine infrastructure contract, Downer will be responsible for the engineering, procurement and construction of on-site infrastructure and preparatory civil works.
The capital for the major fleet for the mining services contract will be provided by Adani.
Downer CEO Grant Fenn said the Adani contract would be one of the largest of its type signed in Australia in recent years.
“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,†he said.
Construction of mine infrastructure at Carmichael is set to begin in the fourth quarter of 2015. Mining is forecast to start in the second quarter of 2016 and first coal delivered in 2017.
Adani Australia country head and CEO Jeyakumar Janakaraj said today’s announcement was the latest milestone in Adani’s transition from approvals to the building phase of the company’s mine, rail and port projects.
“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,†he said.
“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.â€
AAP