Why Adani Carmichael Coal and Railway Project Could Play a Critical Role in Flagging off Future Projects in Australia

The Adani Carmichael coal mine and railway project in the Galilee Basin of Queensland is being touted as a unique endeavour for its end-to-end capabilities in mining coal and delivering it to the end-users. As things stand, Bravus, a subsidiary of Adani Group, will mine the coal from the 10-million ton per annum Carmichael coal mine and transport the same on its own railway line to the port of Abbot Point.

The procured coal will then be shipped to its Indian port and carried to the company’s power plants across different states in the country. However, both the projects are expected to not only benefit the Adani Carmichael coal mine, but future projects as well. Experts feel that this project can open similar big ticket investment opportunities in the Galilee Basin.

The Adani Carmichael coal mine project, in particular, presents the potential of a multiplier effect in the region given the economic as well as social developments prospects.The rail and port infrastructure will infuse a new lease of life into other proposed megamines in the Galilee Basin belonging to other companies.

In other words, the Adani Carmichael coal mine will open the entire Galilee Basin for exploration. The 250,000 square kilometre basin is bigger than the United Kingdom and is estimated to hold over 27 billion tons of coal.

However, Adani’s business model is not proposed to just impact the mines and railways, it could potentially boost the entire value chain including small and mid-sized businesses and skilled workforce. Other than optimising the value chain, both the projects will minimise the capital expenditure in terms of CapEx ratio on mining and infrastructure. Such a development will pave the way for third parties to get involved and spur the growth in Queensland and Australia at large.

Adani’s Carmichael coal project is likely to be a new beginning for opportunities entering the region.Once the Carmichael coal mine starts the production, five more coal mines are expected to come up in the Galilee Basin. These projects will aim to take out their coal through the existing ports in the region.

Originally, the Adani Group had planned to build a 388 km railway line from the Galilee Basin to its coal terminal at the Abbot Point. However, the company decided to scale it down due to some obstructions and planned to build only 200 km of track as per the revised strategy. At the end of it, the railway track will ultimately connect to the existing Goonyella line.

Flagging off such a crucial project could be a game-changing prospect in the current market scenario for the state. It could boost the investment sentiment and help in getting the upcoming projects off the hook in other sectors as well. The completion of such a humongous project will give confidence to the local government to look at the future prospects and benefits when it comes to giving a green signal to new projects, instead of succumbing to the pressure of planned protests and far-fetched activist designs.

At this juncture, all the eyes are firmly set on the success of Adani Carmichael coal and railway projects. Once both the projects are operational, the road for other projects in the region will only get better and better.

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