C O M P A N Y O V E R V I E W
Adani Mining:
Investing in Queensland Not only is the Carmichael coal, railway and port project set to develop the largest coal mine in the world, the project will also result in economic and social benefits for Queensland. Written by: Robert Spence Produced by: Wayne Masciotro
A D A N I M I N I N G P T Y LT D
Jeyakumar “JJ” Janakaraj, CEO Adani Mining
5
April 2015
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ith an estimated price tag of USD $16.5 billion in capex and sustaining capital, the Carmichael coal, railway and port project based in Queensland, Australia, is on-track to build one of the world’s largest thermal coal mines, producing roughly billions of tonnes of coal resources during its estimated 60year lifespan. The Project is being spearheaded by Adani Mining, the Australia-based subsidiary of Adani Group, and the expectations are as high as the cost.
Funds received from taxes and royalties will be directly reinvested, assisting with the development, maintenance and support of schools, hospitals, roads, and other local services. “The biggest part of the project will be the multiplication effect; there is no point in just being the world’s largest mine. Rather, I think the point of the project is to create value for millions of people around the world starting from where the mine starts, not just in economic activity but also in social wellbeing. “It’s a mine, rail and port, but Social and Economic Benefits it won’t just cater to Adani. It will Located in the north Galilee Basin assist other parties in the region to approximately 160 km north-west share infrastructure and grow their of Clermont in Central Queensland, business,” Janakaraj added. The Project is set to not only benefit the industry but the Setting the Stage community as well. A project of this size calls for “[The Project] will deliver vital extensive logistical planning, export opportunities for Queensland, from permits to partnerships and [create] 10,000 local jobs, [garner] everything in between. And even $22 billion in taxes and royalties, and though a lot has been accomplished [provide] crucial work opportunities thus far, much still remains. for small- and medium-sized “So far all, of the approvals are businesses,” said Adani Mining completed as well as the entire CEO Jeyakumar “JJ” Janakaraj. engineering. We have finished the
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A D A N I M I N I N G P T Y LT D bankable feasibility phase and now we’re in the ordering phase, completing key contracts. Last year we completed the port contract and we just recently finished the Downer contract for mining,” said Janakaraj. The Downer contract, which is a five-year deal that includes two additional one-year options, is for mining services and construction of mine infrastructure. It will also include 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.
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“In selecting Downer as the mining services contractor, we are confident that not only are we wellplaced 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,” said Janakaraj. Adani has also secured a $2.2 billion agreement with Koreanbased powerhouse POSCO for the engineering, procurement and construction of the North Galilee Basin Rail (NGBR). Adani is expected to complete contracts for the coal handling plant and mine construction later this year. The company is currently finalizing contracts for machinery providers, and names should be announced sometime later this month.
“The revenue generation and the returns on the infrastructure assets are truly needed by the State. This model will not just create jobs but will create a sustainable future for Australia.” – Jeyakumar “JJ” Janakaraj, CEO of Adani Mining
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CARMICHAEL COAL PROJECT SEEKS KOMATSU CONFIDENCE LTD The Carmichael Coal project in Queensland’s Galilee basin represents a watershed moment in the history of Australian mining. A mine with the greatest haulage requirements, project owner Adani Mining has looked to Komatsu to achieve their objectives. Komatsu Australia Pty. Ltd. is set to supply a fleet of ultra-class haulage trucks, comprising two enhanced products, designed for the utmost in efficiency and productivity. The Carmichael mine is expected to yield over 60 million tonnes of coal p.a. To meet this challenge, Komatsu will proudly provide Adani with the largest ultra-class haulage fleet ever seen in the company’s local history. Timed to address the needs of the Carmichael Coal project, Komatsu has developed an Enhanced 960 ultra-class product that will increase haulage capacity and the overall productivity of the mine. Coupled with Komatsu’s low maintenance intensity and guaranteed lifecycle expense, the Enhanced product offers the highest efficiency, lowestrisk solution for Adani and the Carmichael Coal project’s myriad stakeholders. Based on the 960E, the Enhanced 960 is capable of delivering a markedly increased 360 metric tonne payload. The enhanced unit has also received a host of supporting upgrades to enable the increase in payload capacity, including upgraded wheel motors. Komatsu’s proven 930E-4SE is based on the venerable 930E and is fitted with the 960E’s 3,500Hp dual stage turbocharged V18 engine, critically providing an increased average speed on grade for deep pit operations. Reflecting Komatsu’s global technology leadership, the Enhanced 960 and the 930E-4SE will be provided to Adani with autonomous capability. While the products will not initially operate as an autonomous haulage fleet, the capability to upgrade the ultra-class trucks to autonomous in future will form a key differentiator to the Carmichael Coal project. The longstanding relationship with Adani is of the highest priority to Komatsu, encompassing direct CEO to CEO communications between Adani Mining Australia CEO Jeyakumar Janakaraj and Komatsu Australia Pty Ltd CEO Sean Taylor. Mr Taylor believes that the partnership with Adani and Komatsu’s involvement in the Carmichael Coal project is among the most significant relationships in the company’s local history. “Adani and the Carmichael Coal project are changing the direction of the Australian mining industry. This project is of critical importance and this relationship reflects the confidence that Adani has in Komatsu’s proven reputation. The efficacy of the Enhanced 960 and 930E-4SE mining haul trucks demonstrate our global commitment to this project.” “Every Komatsu customer is unique in their needs. While Adani’s requirements are significant in volume, Komatsu’s attention to detail and drive to provide effective solutions for our customers has earned us an opportunity to supply what I believe are the most technologically advanced ultra-class trucks in the world. Komatsu Australia’s role is to ensure we add the human dimension to complement our fantastic products. Our partnership with Adani extends from coalface to CEO. Together, we will ensure we are building a genuine future for Queensland and Australia,” said Mr Taylor.
Website: www.komatsu.com.au
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CEO, Adani Ports, Capt Sandeep Mehta, CEO, Adani Mining, Jeyakumar Janakaraj, COO, Adani Mining, Samir Vora
Ensuring Success “When you set up a business, you have to set it up right for longterm production and gains. You must remain competitive in the global cost curve, no matter what,� explained Janakaraj. Enter the QUT Graduate School
of Business, with which Adani recently partnered to provide a series of workshops and individual and team coaching for executives and emerging leaders connected to The Project. This 18-month partnership is a proactive effort to enhance leadership capabilities adaniaustralia.com.au
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A D A N I M I N I N G P T Y LT D and remain competitive in today’s tough global market. “We have a large keen interest in our partnership with QUT to handle the complex project we are running. We can pay contractors to build the mine, port and rail, but with QUT, we’re building the brains of the operation.” The Finished Product The end-goal of The Project is to execute a vertically integrated pit-to-plug business strategy, revolutionizing the industry as the mines, port and railway work in unison to provide coal to consumers.
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“Multiple mines will be included on the same property with an open pit and an underground pit,” Janakaraj explained. “The first phase of the project will produce 40 million tonnes of coal, which will include 15 million tonnes from the underground mine, while the open pit will produce 25 million tonnes of coal. The second phase will produce 60 million tonnes.” The coal from the mine will be transported by a 388 km standard gauge rail line to one of two terminals at Abbot Point Port near Bowen. The rail infrastructure will be capable of transporting 60
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“In our eyes, this is the mine of the future.” – Jeyakumar “JJ” Janakaraj, CEO of Adani Mining
million tonnes of coal per year. “We will be utilizing at least 45, 400-tonne driverless trucks. All the vehicles will be capable of automation. When we ramp up the mine, everything will be autonomous from mine to port. In our eyes, this is the mine of the future,” said Janakaraj. The port, which was purchased by Adani on a 99-year lease in 2010, will be expanded to hold
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120 million tonnes, nearly doubling the current capacity (50 million tonnes). Because the port is used by large mining companies including BHP Billiton, Rio Tinto and Glencore, the vision behind the expansion, along with increasing capacity, once again returns to supporting growth within the industry and ensuring socio-economic benefits. “We want to create a multi-user
WORLEYPARSONS AECOM JOINT VENTURE
WorleyParsons and AECOM are two of the largest global infrastructure consultancies creating, enhancing and sustaining some of the world’s most critical infrastructure for the cities and communities we live in. As individual companies they have participated in some of the world’s most iconic projects including the World Trade Centre, London Olympics Athletes Village, Western Australia’s Fortescue Metals-Rail & Port development and Telfer Deeps Gold Mine. More locally the companies have been heavily involved in Queensland’s Moreton Bay Rail Link, QGC unconventional gas production, Sydney’s WestConnex and Queensland’s ZeroGen Project. Their combined experience in rail projects spans a broad range of consulting services to enable the delivery of projects including long-haul freight rail lines, transit rail lines, as well as port cargo and bulk intermodal transfer facilities. The companies have the skills to support clients in all aspects of project delivery including design, approvals, community consultation, construction support and independent verification. Project development comes with a focus on environmental stewardship, efficiency, and a long-term operation and maintenance balance against capital expenditure. The two companies have joined to support the delivery of the Carmichael Rail Line. The joint venture will design and support the construction of this significant heavy haul rail line that links the Carmichael Coal Mine to the Port of Abbot Point approximately 388km’s away. Website: www.worleyparsons.com/
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CDM Smith’s highly qualified and experienced team of engineers and scientists specialise in water engineering, water science and environmental consultancy services. We have proudly supported Adani with engineering, design, environmental management and approvals for port, mine, quarry and water infrastructure, since inception of the Carmichael Coal Mine and Rail Project over four years ago.
21 McLachlan Street Fortitude Valley, QLD , Australia Tel: +61.7.3828.6900 Email: Brisbane@cdmsmith.com
www.cdmsmith.com
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JJ speaks with Adani staff.
facility model for the infrastructure so more companies can use it and grow,” said Janakaraj. “The revenue generation and the returns on the infrastructure assets are truly needed by the State. This model will not just create jobs but will create a sustainable future for Australia.”
Construction of the Carmichael coal, railway and port project is expected to commence later this year, with the first coal expected in 2017. The Adani Group’s venture into Australia commenced in 2010 with the purchase of coal tenements adaniaustralia.com.au
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Abbot Point.
W
e’re excited to be an integral part of the Carmichael Coal Project, partnering with Adani to deliver safe and innovative mining services, including load and haul, drill and blast, and the construction of minerelated infrastructure. As one of Australia’s leading mine contractors with nine decades of experience and a proven track record in Central Queensland, we’re looking forward to contributing to the growth of the region’s economy through job creation and local business opportunities.
Ph: +61 7 3026 6666 www.downergroup.com
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for the proposed Carmichael Mine in the Galilee Basin, Central Queensland, and a 99 year lease of the coal terminal at the Port of Abbot Point near Bowen in North Queensland. The company’s vision is to execute a vertically integrated “pit to plug” business with the coal from the proposed Carmichael Mine being transported by rail to the Port of Abbot Point for export to meet consumers’ demands in offshore markets. Adani Mining is committed to developing a world-class operation through its scale of ambition, speed of execution and quality of operation. The company believes in inclusive growth and sustainable development of the communities in which it operates, which is illustrated through the Carmichael coal, railway and port project.
Janakaraj is very clear about the true value of Adani’s project—It is not just about being one of the largest mines in the world; it is about the economic and social benefits that will be created.
Company Information INDUSTRY
Coal Mining HEADQUARTERS
Brisbane Queensland, Australia FOUNDED
2010 C O M PA N Y / OVERVIEW
Adani Group is represented by 10,000 people across the globe working for a common purpose. Led by one of India’s most visionary Chairmen, Gautam Adani, the company is also supported by a talented and experienced management team including Jeyakumar Janakaraj, CEO of subsidiary Adani Mining.
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Adani Mining Pty Ltd Address GPO Box 2569 Brisbane Queensland, Australia 4000 Tel. + 61-7-3223 4800 Fax. + 61-7-3223 4850 Australia@adani.in www.adaniaustralia.com.au