May 17, 2020

Australia Approves Adani Group's Carmichael Coal Project

Adani Group
Carmichael coal and rail project
Queensland
C
Admin
2 min
Australia Approves Adani Groups Carmichael Coal Project
The Australian government has given Indias Adani Group (NSE:ADANIENT)the green light for its $16.5 billion Carmichael coal and rail project in Queenslan...

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.

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May 11, 2021

Gerald Group resolves iron ore dispute with Sierra Leone

Gerald Group
SL Mining
Iron ore
Marampa iron ore mine
2 min
Gerald Group, the US commodity broker, set to restart iron ore shipments from Marampa mine with subsidiary SL Mining

Gerald Group, the US commodity trader, will pay Sierra Leone $20mn and cede a 10% stake in an iron ore project as part of the resolution to a nearly two-year dispute that led to the shutdown of production, the two sides revealed.

SL Mining

Gerald's wholly-owned subsidiary SL Mining filed for arbitration in August 2019 over a royalty payment dispute and suspended the Marampa mine the following month. Sierra Leone's government responded by cancelling its mining licence. 

As part of the agreement signed on Friday, Sierra Leone will take a non-dilutable 10% stake in a new company that will replace SL Mining and resume operations at Marampa by June 1, Gerald said in a statement.

Iron Ore

Gerald will make two $10mn payments this year and will have the immediate right to ship its current stockpile of about 707,000 tonnes of iron ore, it said.

Both sides will withdraw their legal claims before the International Chamber of Commerce (ICC) and International Centre for Settlement of Investment Disputes (ICSID), the statement added.

Gerald’s chairman and CEO Craig Dean commented: "I am delighted that we have been able to resolve our differences and have a fresh start and new beginning with the government of Sierra Leone."

SL Mining

 

Sierra Leone

Sierra Leone's Mines Minister Timothy Kabba told a news conference on Tuesday that the agreement was a milestone for the country.

"Whatever the pain we may have borne or dreaded throughout these two years ... this outcome justifies our action," he said.

Gerald estimates that Marampa holds about 1 billion tonnes of iron ore with a potential lifespan of 30 years.

Gerald Group

Back in 2019, Dean spoke with Mining about the development of Marampa and commented: "SL Mining offers a substantial opportunity for Gerald Group as our Marampa mine in Sierra Leone is producing two million tonnes per annum of high grade iron ore in the first phase of development, with expansion possibilities of greater than six million tonnes per annum of high-grade iron ore during its operational life. If you analyse the iron ore market it has transformed, even from a couple of years ago when prices were very low. Now prices have stabilised we’re in a favourable position with our first shipments leaving for China.

"Our goal is to make ‘Marampa Blue’ an internationally recognised premium grade iron ore brand. We intend to expand the delivery of high-grade 65% iron ore concentrate to markets in Europe and Africa.”

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