Adani will begin construction of its Carmichael coal mine in October

INDIAN mining giant Adani has announced it will break ground on its Carmichael coal mine in Queensland in October.

INDIAN mining giant Adani has announced it will break ground on its Carmichael coal mine in Queensland in October.

Company chairman Gautam Adani issued a statement overnight, confirming the start of works for the $16.5 billion project in Queensland’s Galilee basin, with the first coal to be produced by the facility in March 2020.

Adani’s Australian head Jeyakumar Janakaraj said Charters Towers-based civil contracting firm GA Services would be among the first regional contractors to benefit from the start of works.

“Adani Australia’s regional content initiatives will have long-term benefits for Queensland, particularly for contractors like GA Services who help us meet our Indigenous content targets,” said Mr Janakaraj said in a statement.

GA Services has been selected to refurbish the company’s existing exploration camp accommodation. Sixteen refurbished rooms are already operational, with a working power generation system and sewage treatment plant installed.

A further 245 rooms at the Carmichael camp are expected to come online by early September, along with extra facilities, project offices, utilities and communications.

In an interview with Indian media on Friday night, Mr Adani said: “The project will be funded by internal accruals, NAIF and foreign banks. Talks have already started with the banks”.

But a $1 billion concessional loan from the Federal Government’s National Australia Infrastructure Facility (NAIF) has not yet been approved.

The loan, which Adani will use to build a rail line from the mine to Abbot Point port, has been controversial with many saying taxpayers should not be helping to find the project.

There have also been calls for the loan to be denied after Adani was accused of ripping off Indian citizens through a complex fraud.

But the company has decided to move forward on the project after the Federal Court dismissed two legal bids to stop it from going ahead, from traditional owners and environmental groups.

Appeals lodged by the Australian Conservation Foundation and traditional land owner Adrian Burragubba were dismissed on Friday.

However, the Environmental Defenders Office said it would continue to examine the lawfulness of the mine.

Environmental activists are concerned about the potential impacts to the Great Barrier Reef as the coal will be shipped through areas close to the national icon. There are also concerns the coal burned will contribute to climate change, which is the biggest threat to the reef.

Chairman of the Adani Group Gautam Adani. Picture: Sam Panthaky/AFP