The Carmichael Coal Mine in Queensland, Australia

News

Indian coal mine chooses Korean company to build 366km Australian rail link

18 July 2014 | By Joe Quirke | 0 Comments

Adani Mining this week chose South Korean contractor Posco to build the rail line needed to open up the Galillee Basin coalfield in the Australian state of Queensland. 

Posco will build a 388km rail link with the capacity to haul 60 million tonnes of coal a year. 

The Korean contractor will help fund the construction of the non-electrified line by buying an equity stake.

Jeyakumar Janakaraj, the chief executive of Adani Australia, said: “The agreement will enable us to develop a cost-efficient rail solution, and this relationship gives Adani access to the Korean market, Posco’s expertise and capital.”

Adani had originally planned to start the project this year after purchasing its share of the untapped mine in 2010. Work is now expected to begin in early 2015.

Gautam Adani, the chairman of Adani Group, said the project would create 10,000 jobs and provide “vital opportunities for Australian infrastructure development and contribute to energy security of India by lighting the lives of millions of Indians”.  T

he Carmichael Coal Mine and Rail Project is estimated to have an operating life of about 90 years.