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.
Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.