Approval for Adani Mining Pty's $16.5B Rail Project Expected August 1
India-based mining company Adani Mining Pty Ltd is awaiting finalization from the federal environment minister Greg Hunt on the approval of its $16.5 billion rail project in Queensland. A decision is expected August 1.
The company’s Carmichael mine project, which is expected to be the biggest coal mine in the world, was approved by the Queensland’s coordinator general two months ago. However, the project was subject to additional approval due to the company’s planned rail project.
The 300 kilometer rail line will connect Adani’s planned coal mine to the Abbot Point Coal port, near the Great Barrier Reef.
The company is seeking to have the Commonwealth approval process for the rail project be aligned with the anticipated Queensland Coordinator Genera’s approval for the project.
"Decisions on these approvals had always been envisaged on or around Q1 2014-15FY,” Adani said in a statement. "These timelines, coupled with the extant Abbot Point approvals process, position the company well to ensure it meets its longstanding first coal guidance for 2017.”
"After receiving the Queensland Coordinator General’s approval on May 8th, Adani’s Carmichael Coal Mine was deemed a prescribed project by the Queensland Minister for State Development and Deputy Premier Jeff Seeney, another step towards the project’s timely commencement," it said.
The Carmichael project, which is located in the Galilee basin, has been subject to over 190 conditions since Adani first launched the proposal.
"Approvals granted for Adani’s infrastructure investments in Queensland have, to date, been amongst the strictest and most stringent processes of their kind ever undertaken by any level of government in Australia,” Adani said in the statement.
"Adani looks forward to continuing to work with our project partners and all levels of government in Australia.”
Global iron ore production to recover by 5.1% in 2021
Global iron ore production fell by 3% to 2.2bnt in 2020. Global production is expected to grow at a compound annual growth rate (CAGR) of 3.7% to 2,663.4Mt between 2021 to 2025. The key contributors to this grow will be Brazil (6.2%), South Africa (4.1%), Australia (3.2%) and India (2.9%). Key upcoming projects expected to commence operations include South Flank in Australia (2021), Zulti in South Africa (H2 2021), Serrote Da Laje in Brazil (H2 2021) and Gudai-Darri (2022), according to GlobalData, a leading data and analytics company.
Vinneth Bajaj, Associate Project Manager at GlobalData, comments: “Declines from Brazil and India were major contributors to the reduced output in 2020. Combined production from these two countries fell from a collective 638.2Mt in 2019 to an estimated 591.1Mt in 2020. The reduced output from the iron ore giant, Vale, was the key factor behind Brazil’s reduced output, while delays in the auctioning of mines in Odisha affected India’s output in 2020.
“Miners in Australia were relatively unaffected by COVID-19 due to effective measures adopted by the Australian Government, while a speedy recovery in China led to a significant 10.4% increase in the country’s iron ore output.”
Looking ahead, the global iron ore production is expected to increase by 111.3Mt to 2,302.5Mt in 2021. Rio Tinto is expected to produce up to 340Mt of iron ore, while BHP has released production guidance of 245–255Mt, supported by the start of the Samarco project in December, which is expected to produce between 1–2Mt.The company has retained its guidance for Australian mines at 276–286Mt on a 100% basis, due to scheduled maintenance work at its ore handling plant and tie-in activity at the Area C mine and South-Flank mine.
Bajaj added: “The remaining companies are expected to produce more than 600Mt of iron ore, including FMG, whose production is expected to range between 175–180Mt supported by its Eliwana mine that commenced operations in late December 2020, and Anglo American, which is expecting to produce between 64–67Mt. Vale is expected to resume 40Mt of its production capacity, taking its overall production capacity to 350Mt in 2021, with production guidance of 315-335Mt.”