4 JUL, 2012, PTI
MELBOURNE: The Queensland government has said the Adani Group and Queensland Railway's (QR) decision to work on an integrated east-west rail proposal for the Galilee Basin could provide an efficient supply chain for the region.
This co-operative approach was exactly what the government had sought following extensive negotiations with all proponents of mine and rail developments in the region, said Deputy Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney.
"By declaring two rail corridors for future mines in the Galilee Basin we hoped to facilitate this sort of progress," Seeney said in a statement, welcoming the two companies' decision to move further on the project and carry out a feasibility study.
"Adani and QR National's decision to jointly evaluate an integrated rail project and accelerate work into the feasibility stage is good news for the companies and the state," he added.
The state government will continue to work with all mining companies and rail proponents to progress development in the Galilee Basin which would be of great benefit to the region, the state and the nation, he said. "We agree with both companies that an integrated solution could provide an efficient and effective supply chain," Seeney said.
Earlier this week, the two firms had said in a joint statement that "preliminary work between the two companies under an MoU will now move into a feasibility stage. The study will assess rail infrastructure and haulage services for 60-80 million tonnes of thermal coal per annum from Carmichael Mine to Abbot Point Coal Terminal".
The Gujarat-based Adani Group has coal mines in Australia's Queensland province and a port at Abbot, which it had bought two years ago for nearly USD 2 billion -- making it the single largest Indian investor in that country.
The Queensland Government had earlier decided to have a new railway connectivity on the West-East corridor to the existing coal network of the QR that would service emerging Galilee Basin coal mines. "A vertically integrated solution where Adani and QR National work across the mine, rail and port interfaces will result in a very efficient and cost effective supply chain," Adani Chairman Gautam Adani had said.
QR National Managing Director and CEO Lance Hockridge had said, "Through preliminary work we have been doing with Adani, it became clear there was an alignment of interests in developing an integrated rail solution for their Carmichael Mine."
Adani Enterprises had proposed USD 6 billion investment early this year and said it would mainly go into developing Abbot Port ( Adani Abbott Point Coal Terminal) and the Galilee Basin coal mines along with constructing of a rail head between coal mines and the port that is around 500-km away.
The group's Australian arm Adani Mining Pty has commenced its mining exploration in the Galilee Basin. The Australian mine is expected to begin production by January 2015.
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