Adani Mining Partners with Posco for Rail Deal at Carmichael Mine
Adani Mining Pty has signed a binding agreement with POSCO E&C to develop its 388km railway for the Carmichael mine in Queensland’s Galilee Basin.
The company will give exclusive rights to POSCO E&C to be the engineering, procurement and construction contractor for the project. The deal is estimated to be worth $2.2 billion and will include construction of the railway from the Carmichael mine in the northern part of the Galilee to the already established rail lines in the Bowen Basin.
"This is the first major step towards finalizing the project's construction contracts ... The binding agreement will enable us to develop a cost efficient rail solution,” said Adani CEO Jeyakumar Janakaraj.
The rail infrastructure will be capable of transporting 60 million tons of coal per year.
According to Indian billionaire owner Gautam Adani, the project will provide Australia with ample job opportunity and economic benefit.
“The rail project will lead to the opening of the Carmichael mine project, which will deliver in excess of 10,000 jobs, and will also provide vital opportunities for Australian infrastructure development and contribute to energy security of India by lighting the lives of millions of Indians,” said Indian billionaire owner Gautam Adani.
In addition to building the project, POSCO will help fund the rail line by buying an equity stake in the Carmichael project.
The Carmichael mine is expected to produce 10 billion tons of coal and is considered by many to be the largest single coal tenement in the world. Production of the site is expected in 2017.
Construction of the rail line is expected next year with the company still waiting to gain final federal approval for its massive coal project.
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.