Adani, Downer Ink Massive $1.6 Billion Deal for Carmichael Coal Mine
In one of the largest deals of its type, Adani Mining has awarded Downer EDI with a $1.6 billion contract for services at the Carmichael Coal Mine in Central Queensland.
Under the five-year deal, which includes two additional one-year options, Downer will provide mining services and construction of mine infrastructure for thermal coal mine, including 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.
"The Carmichael mine lies at the heart of these projects which will deliver vital export opportunities for Queensland, 10,000 jobs, $22 billion in taxes and royalties to be invested right back into frontline services across our State, and crucial work opportunities for small and medium sized businesses,” said Adani Australia country Head and CEO, Jeyakumar Janakaraj.
"This partnership with Downer reflects the clear confidence that tier one firms have in Adani's projects and we welcome the chance to work with such a respected, proven partner on this critically important task.”
The deal is the latest milestone in Adani’s transition from the approvals stage to the building phase of the company’s mine, rail and port projects.
"In selecting Downer as the mining services contractor, we are confident that not only we are well placed 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," Janakaraj said.
Located in the Galilee Basin, the long awaited Carmichael project is expected to be the biggest coal mine in the world. Adani’s mine, rail and port projects will be Queensland’s first standard gauge line that will help open up the basin by linking the mine to the port of Abbot Point, and the existing Terminal One and soon be constructed Terminal Zero at Abbot Point.
"We're very much looking forward to working with Adani at the Carmichael Coal Mine, which is expected to become the largest thermal coal mine in Australia," Downer’s CEO Grant Fenn said.
Read Downer's press release here.
Copper production from top ten companies to increase by 3.8%
Copper production from the world’s top companies is set to increase by up to 3.8% this year, following a fall of 0.2% in 2020, GlobalData analysis reveals. Last year’s marginal slump saw production drop to 11.76 million tonnes (Mt).
The initial impact of the COVID-19 pandemic on mining operations was immense, however, six of the ten largest copper producers succeeded in increasing output last year. In 2021, copper production from the top ten copper companies is expected to bounce back, rising by up to 3.8%, to reach 12.2Mt, according to GlobalData, a leading data and analytics company.
The highest increase in copper production was by Canada’s First Quantum, which, despite all the challenges, reported 10.4% growth in 2020. The company’s Sentinel mine in Zambia and Cobre Panama were key contributors to this growth. While the latter remained under care and maintenance between April and August 2020, it delivered record production levels during the subsequent months.
Codelco, the world’s largest producer of the red metal used in electric vehicles, also bucked the trend.
Vinneth Bajaj, Associate Project Manager at GlobalData, commented: “Despite Codelco reporting over 3,400 active cases during July 2020, the company achieved 1.2% growth in its production in 2020. The company implemented a four-phase plan, as part of the COVID-19 measures, to ensure the health and safety of its employees, while also avoiding any significant impact to its copper output.”
Although the overall impact was minimal, declines in production were observed from Glencore (8.2%), Antofagasta (4.7%), BHP (3.9%) and Freeport McMoRan (1.3%). Reduced operational workforces due to COVID-19 measures, lower ore grades and production halts due to maintenance were the key disruptors to output during 2020.
The move towards electric vehicles and clean energy from renewables sources such as solar panels and wind turbines has driven the copper price to all-time highs. Copper has been among the best performers over the last month where metals ranging from aluminum to iron ore have surged to their highest prices in years. The rally is being fueled by stimulus measures, near-zero interest rates and signs that economies are recovering from the global pandemic.