Adani awards Downer $1.6bn contracts for services work at Carmichael Coal Mine

18 December 2014 (Last Updated December 18th, 2014 18:30)

Australian engineering company Downer EDI has secured contracts worth A$2bn ($1.6bn) from Adani Mining to provide mining services and construction of mine infrastructure at the Carmichael Coal Mine in Central Queensland.

Australian engineering company Downer EDI has secured contracts worth A$2bn ($1.6bn) from Adani Mining to provide mining services and construction of mine infrastructure at the Carmichael Coal Mine in Central Queensland.

The five-year mining services contracts with two additional one-year options are expected to have a combined value of more than seven years.

Under the contract, Downer will look after statutory management and mine operations, drilling and blasting, as well as the load and haul of waste and coal.

"Downer will look after statutory management and mine operations, drilling and blasting, as well as the load and haul of waste and coal."

The engineering company will also be responsible for the engineering, procurement and construction of on-site infrastructure and preparatory civil works at the thermal coal mine located in the Galilee Basin.

Adani Mining will provide the capital for the major fleet for the mining services contract.

According to Downer, the letters of award are subject to the parties executing binding contracts, which will be followed by pre-production and planning in early 2015.

Construction of the mine infrastructure is set to commence in the fourth quarter of 2015, with first mining scheduled for the second quarter of 2016 and first coal in 2017.

Adani Australia country head and CEO Jeyakumar Janakaraj said: "The Carmichael mine lies at the heart of these projects, which will deliver vital export opportunities for Queensland, 10,000 jobs, $22bn in taxes and royalties to be invested right back into frontline services across our state, and crucial work opportunities for small and medium-sized businesses.

"This partnership with Downer reflects the clear confidence that tier one firms have in Adani's projects and we welcome the chance to work with such a respected, proven partner on this critically important task."

Adani's mine, rail and port projects include the cost-efficient Carmichael mine, near Clermont, both the Carmichael and North Galilee Basin Rail, Queensland's gauge line and the existing Terminal One and the Terminal Zero at Abbot Point near Bowen, which will be constructed soon.