The Adani subsidiary is said to be on track to export first coal from the project this year

bravus_ccm-018-edit-resize

Construction on the coal mine began in June 2019. (Credit: Bravus Mining and Resources)

Bravus Mining and Resources has struck first coal at the AUD16.5bn ($12.49bn) Carmichael Project in Queensland, Australia.

The company, which is a subsidiary of India-based Adani Group, said that it has exposed the first of the coal seams at the project.

Construction on the coal mine located in North Galilee Basin in Central Queensland began in June 2019 after securing all the final approvals.

The project is poised to export first coal this year, said the company’s CEO David Boshoff.

Boshoff said: “Throughout the last two years of construction and during the many years when we fought to secure our approvals, our people have put their hearts and souls into this Project – it is wonderful that we have now struck coal.

“Nearly two years ago today we received our final approvals to develop the Carmichael mine and rail Project. We have faced many hurdles along the way, but thanks to the hard work and perseverance of our team, we have now reached the coal seams.”

The Carmichael Project is made up of a thermal coal mine and a 189km long railway line from the mine to Moranbah. Its coal will be transported from the Galilee Basin to Asia.

The foundation customer for the project will be India, which is among the top consumers of electricity in the world. India is also the source of the biggest growth in energy demand across the world, said Bravus Mining and Resources.

The company has so far secured offtake for the initial 10 million tonnes per annum (mtpa) of coal extracted from the open cut mine.

Boshoff said: “The coal will be sold at index pricing and we will not be engaging in transfer pricing practices, which means that all of our taxes and royalties will be paid here in Australia. India gets the energy they need and Australia gets the jobs and economic benefits in the process.”

The Carmichael coal project will be developed with six open-cut and five underground pits with a total production capacity of up to 60mtpa.