Adani edges closer to construction with rail progress

Adani has submitted a conceptual operating plan to initiate the connection of its planned narrow gauge rail line to the Carmichael coal project in Queensland.

The submission triggers a regulatory process that, subject to Adani satisfying a range of conditions, would allow connection of the Indian company’s rail line to the existing network for transport of coal to Abbot Point for export.

Adani Mining chief executive officer Lucas Dow said the submission was an important step towards starting construction of the project.

“Importantly, we are not seeking any state or federal money to kick off construction of the Carmichael project,” Dow said.

“There has been a lot of misinformation and speculation that we need taxpayer money to be able to build the mine and rail. This is absolutely not the case; this project will stand on its own two feet.”

Adani has become increasingly optimistic about the project moving into the construction phase in recent months.

Karan Adani, chief executive officer of Adani Ports and Special Economic Zones, publicly stated in July that Adani had completed financing for the mine and was close to securing funds for the rail component.

Dow said strong ongoing demand for coal in the Asia-Pacific region combined with the commercial competitiveness of the Carmichael mine meant the project’s economics were strong.

“Countries in Asia are developing rapidly and need energy to improve the lives of their people and provide infrastructure and services that people in the developed world take for granted,” he said.

“India and other countries in South-East Asia are the target market for our coal.”