Indian energy firm Adani Group has given final investment approval for its $16.5bn Carmichael coal mine project in Australia.
Carmichael coal mine is a proposed thermal coal mine in the north of the Galilee Basin in Central Queensland, which is expected to produce around 60 million tonnes of coal per annum at peak capacity.
Adani chairman Gautam Adani said in a statement: "I am proud to announce the official start of one of the largest single infrastructure – and job creating – developments in Australia's recent history.
"This is the largest single investment by an Indian corporation in Australia, and I believe others will follow with investments and trade deals."
The company has signed contracts for design, construction, operations, supply of material and professional services for the project.
Adani Enterprises Australia Head of Country and Chief Executive Jeyakumar Janakaraj said that the company has already invested $3.3 billion in the project including buying the bulk coal handling port at port of Abbot Point.
With pre-construction work slated to begin in September this year, the the Carmichael projects are expected to generate around 10,000 direct and indirect jobs.
Recently, the company has entered into an agreement with the Queensland government on royalty payments for the coal mine.
In December 2016, Adani Group had secured the final major State and Federal Government approval for the Carmichael coal and rail project in Australia.
The Queensland’s Coordinator-General had approved the 31.5km of permanent rail line and a temporary construction camp for the Carmichael project.
The mine is planned to be developed with six open-cut and five underground pits, each with a capacity to produce 10Mtpa of product coal at peak production.
In December 2014, Adani Mining elected Downer EDI for mining services and construction of mine infrastructure at the Carmichael coal mine.
Under the A$2bn ($1.6bn) contract, Downer will be responsible for statutory management and mine operations, drilling and blasting, and load and haul of waste and coal.
In addition, the firm will manage he engineering, procurement and construction of on-site infrastructure and preparatory civil works.
Image: Adani Group has taken final investment decision on Carmichael coal mine project. Photo: courtesy of dan/Freedigitalphotos.net.