Australia Approves Adani Group's Carmichael Coal Project
The Australian government has given India’s Adani Group (NSE:ADANIENT) the green light for its $16.5 billion Carmichael coal and rail project in Queensland.
The project, which has undergone an array of obstacles, will become Australia’s largest coal mine and one of the largest in the world.
"We welcome the Minister's approval of the Carmichael Mine and Rail project, which takes us another step closer to delivering our multi-billion dollar mine, rail and port development," Adani Chairman Gautam Adani said in a statement.
Although approval for the Carmichael project was given in May, protests from environmentalist worried over carbon pollution caused major hurdles in the development process.
According to Australian environment minister Greg Hunt, the government has imposed 36 conditions for the project aimed at safeguarding groundwater in the Galilee Basin region of central Queensland.
“The absolute strictest of conditions have been imposed to ensure the protection of the environment, with a specific focus on the protection of groundwater,” Greg Hunt said in a statement.
"The strict conditions will ensure the protection of the environment as a paramount concern.”
He added, “I acknowledge the work of the previous state and federal ALP [Australian Labor Party] governments in advancing consideration of this project.”
The Carmichael project will consist of a network of open cut and underground mines in the Galilee Basin. Coal will be exported via the new Queensland rail line to the port of Abbot Point and approval to build a coal export terminal has already been given.
In addition to creating over 6,000 jobs, the Carmichael project will add $2.97 billion to the Queensland economy per year over the next 60 years.
The Adani Group estimates the mine will produce roughly 60 million tons of coal annually.
“Adani’s commitment to nation-building in India goes hand in hand with its commitment to providing sustainable employment opportunities for local workers and suppliers, not just through our rail infrastructure, but also our longer-term investments in ports and mining," Adani said.
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.