Downer EDI Limited has announced it had received two Letters of Award from Adani Mining Pty Ltd for contracts for mining services and the construction of mine infrastructure at the Carmichael Coal Mine in the Galilee Basin in Central Queensland.
The contracts are expected to have a combined value in excess of $2 billion over seven years. Both Letters of Award are subject to the parties executing binding contracts.
The Chief Executive Officer of Downer, Grant Fenn, said, “The Adani mining services contract would be one of the largest of its type signed in Australia in recent years.”
“We’re very much looking forward to working with Adani at the Carmichael Coal Mine, which is expected to become the largest thermal coal mine in Australia,” he said.
Under the five-year mining services contract, with two additional one-year options, Downer will be responsible for statutory management and mine operations, drilling and blasting and load and haul of waste and coal.
According to the company website, Downer will be responsible for the engineering, procurement and construction of on-site infrastructure and preparatory civil works. The capital for the major fleet for the mining services contract will be provided by Adani.
Adani Australia Country Head and CEO Jeyakumar Janakaraj said the latest milestone in Adani's prompt transition from the approvals to the build phase of the company's mine, rail and port projects.
“The Carmichael mine lies at the heart of these projects which will deliver vital export opportunities for Queensland, 10,000 jobs, $22 billion 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,” Janakaraj said.
Adani's mine, rail and port projects encompass Carmichael mine near Clermont, both the Carmichael and North Galilee Basin Rail, Queensland's first standard gauge line which will help open up the basin by linking the mine to the port of Abbot Point, and the existing Terminal One and soon to be constructed Terminal Zero at Abbot Point, near Bowen.