Adani denies it is making job cuts at Carmichael mine

Adani has denied reports that it is making fresh job cuts from its Carmichael mine project in Queensland.

According to the Sydney Morning Herald, workers on the $10 billion project have been told around 80 people are set to lose their jobs between now and March.

Multiple sources told the SMH that Adani wanted to keep a skeleton crew of just 20 people.

However Adani denies making any “fresh” decisions in the last week relating to job cuts.

The news comes after a number of contracting firms working on Carmichael mine were stood down.

In late June Adani stopped engineering work on the project by WorleyParsons,Aecon, Aurecon and SMEC .

While in July engineering firms Parsons Brinckerhoff and Posco were ordered to stop work on the Carmichael project.

In a statement at the time, Adani said it was committed to the Carmichael project and stated the engineering firms were suspended due to state and federal approval timelines.

Further cuts has thrown more doubt on whether the mine will go ahead, however Adani says any reports of job cuts are “ill-informed”.

"As indicated when asked previously, there were changes over a week ago in relation to project management and execution contracts which were connected to the same engineering contracts and preliminary works variations that Adani announced last month," Adani's spokesman said.

 "The preliminary works contracts were previously sustained due to the level of investment Adani had maintained for more than 12 months in anticipation of a range of government decisions and approvals timeframes.

 "As we announced on 24 June 2015, a number of changes in the approvals processes meant these timeframes had to be adjusted."

On Thursday, Downer EDI announced it had received two letters of award from Adani for contracts relating to the CHPP at Carmichael mine.

The contracts are worth a total of $680 million but can be terminated if contracts had not been entered into by September 30.

Last month it was revealed Queensland treasury officials in the Newman government regarded the Carmichael coal project as “unbankable” due to high debt and offshore corporate structure.

Documents procured under Freedom of Information laws and reported by SMH showed senior treasury officials doubted Adani’s ability to complete the project, and warned then-premier Campbell Newman, who went ahead with moves to guarantee public funding to assist with development of the mine and infrastructure.

Treasury briefing notes said Adani was “highly susceptible to cost shocks”.