Matt Canavan says ‘positive news’ is set to be announced on Adani mega mine

UPDATE: The Adani megamine in central Queensland has ticked off another approval ahead of crucial meetings in north Queensland this week.

THE Adani megamine in central Queensland has ticked off another approval ahead of crucial meetings in the state’s north tomorrow.

The State Givernment said the mine’s rail project and worker’s camp had been given the green light.

Adani Group chairman Gautam Adani will meet Premier Anastasia Palaszczuk tomorrow, in Townsville, where a final deal on the project is expected to be announced.

State Development Minister Dr Anthony Lynham said the latest, and final, secondary approval this week was for about 31.5km of permanent rail line, as well as a temporary construction camp with up to 300 beds.

“This is another key milestone for the project, which Adani has confirmed it will start construction on next year,” Dr Lynham said.

The project already has all primary approvals as well as prescribed project and critical infrastructure project status in place to reduce red tape.

The rail section approved this week will form part of the 389km standard gauge, heavy haul railway line from the mine in the Galilee Basin to the coal export Port of Abbot Point

The project is also expected to get Federal Government funding to pay for half the costs of the rail construction.

Several court cases still hang over the project but will not hold back the mine.

OVERNIGHT: Federal Resources Minister Matt Canavan said there was “positive news” coming regarding the multi-billion dollar Adani mega mine, speaking yesterday ahead of the Indian company’s chairman touching down in Townsville later this week.

And the State Government which proposed the Galilee rail line, which is crucial for the success of the coal project, has applied for funding from a $5 billion Federal infrastructure fund.

Nationals Senator Matt Canavan.

Adani boss Gautam Adani will be in Townsville tomorrow, sparking speculation the city could be announced as the headquarters for the company’s Carmichael mine.

Senator Canavan, who is also Minister for Northern Australia, said Mr Adani’s Townsville trip was a good sign for the project.

“I’m hearing positive news about the progress from Adani and the future of the project,” he said. “It’s a big deal for regional Queensland, it’s a big deal for Queensland and it’s a big deal for Australia.

“This deal would link us with a major emerging force in Asia.”

The pathway for the mine’s future was made easier last week with the Federal Government’s Northern Australia Infrastructure Fund (NAIF) progressing the rail project to the next stage of approval, to access up to $1 billion in concessional loans.

While the 310km long, 100m-wide rail corridor proposed to run from the Galilee basin to the Abbott Point port is estimated to cost about $2.2 billion, NAIF cannot lend more than half a project’s cost.

Letter’s obtained by The Courier-Mail show Treasurer Curtis Pitt in August requesting 11 projects be considered by the NAIF, including the rail line.

Senator Canavan said it would be up to the NAIF board’s expert panel on whether to issue final approval for a loan. “They’ve made a decision to go to a further stage to do due diligence. It’s up to them to look at the numbers and see if it stacks up,” he said.