A part of India-based Adani Group, the mining company said that it will start construction on the Carmichael coal project, which is expected to produce 27.5 million tons of per annum (mpta) of coal in its first stage. All the coal drawn during the initial ramp up stage will be used by the Adani Group’s captive requirements.

The Carmichael coal project will be developed with six open-cut and five underground pits. Each of them will have a production capacity of up to 10mtpa.

Adani Mining intends to start development of a smaller open cut mine that will be on par with several other Queensland coal mines and will ramp up production over time to the 27.5mtpa.

The coal produced from the Carmichael coal mine will be sent to Abbot Point Port through a 189km rail line.

Adani Mining CEO Lucas Dow said: “Our work in recent months has culminated in Adani Group’s approval of the revised project plan that de-risks the initial stage of the Carmichael mine and rail project by adopting a narrow gauge rail solution combined with a reduced ramp up volume for the mine.”

“This means we’ve minimized our execution risk and initial capital outlay. The sharpening of the mine plan has kept operating costs to a minimum and ensures the project remains within the first quartile of the global cost curve.

Adani Mining is likely to begin preparatory works at the mine site in the coming days. The company said that it is also working with regulators to wrap up the remaining management plans that are required prior to coal production.

In December 2016, Adani Mining was granted the final major state and federal approval needed for the coal and rail project, located about 160kms north-west of Clermont. At that time, the coal and rail project was estimated to see an investment of A$21.7bn ($15.1bn).

The Carmichael coal mine is expected to create over 1,500 direct jobs during the initial ramp-up and construction stage. Further, it will create thousands more indirect jobs, which would benefit regional Queensland communities, said the mining company.