Adani to speed up delivery and reduce cost of rail line into Galilee Basin with new design

MINING giant Adani has made a major announcement that will impact its Carmichael coal mine project.

ADANI has developed a new railway design for their Carmichael mine to reduce capital costs and speed up delivery of the project.

The company had previously planned to build a 388km standard gauge railway between the Galilee Basin and Abbot Point Port but will instead leverage existing rail infrastructure and build a narrow gauge line that will be about 200km.

The existing rail infrastructure into the Galilee Basin is owned by Aurizon.

Adani’s original rail project was expected to cost about $2.3 billion to build, however, it is understood the new design, which is half the length of the previous plan, would dramatically decrease that cost.

The narrow gauge rail will follow the same route as previously contemplated and the initial design capacity of 40 million tonnes per annum, ensuring capability to manage the Carmichael mine’s planned 27.5 million tonne yearly production rate.

The 27.5 million tonne open cut mine is significantly smaller than the 60 million tonne mine allowed under the Carmichael Project approvals, which enables the delivery of a lower capacity rail design.

Adani Mining CEO Lucas Dow said the change in mine design would speed up its development.

Adani Mining chief executive Lucas Dow said the change in design would speed up the development of the Carmichael mine.

“By connecting to the existing network we can fast-track project delivery, reduce capital expenditure and deliver coal more quickly to countries in Asia with growing energy demand,” he said.

“We’re 100 per cent committed to getting the Carmichael project off the ground.

“Delivering practical, time efficient and cost-effective solutions such as this new rail design will ensure project benefits are realised as quickly as possible, especially in regional Queensland where people are eager to secure jobs and opportunities for small business.”

Construction and operation of the railway could create new jobs that will benefit places like Townsville, Rockhampton, Bowen and Mackay.

Mr Dow said Adani had already secured the necessary approvals and land access agreements with landholders needed to build the line.

“All our existing agreements with landholders will remain in place without question. These people have been with us every step of the way and we’re determined to ensure we maintain these relationships.”

Adani will now submit the necessary applications to connect the new rail line with the existing network.

Adani is evaluating its options for provision and management of rolling stock to service the mine.

Originally published as Adani to speed up delivery and reduce cost of rail line into Galilee Basin with new design