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Downer EDI wins $2bn contracts with Adani

AREEA member Downer EDI has been awarded two new mining services contracts for Adani’s Carmichael coal mine, soon to be under construction in Queensland’s Galilee Basin, together worth more than $2 billion over seven years.

Receiving two letters of award from the Indian-based Adani last week, Downer EDI will be responsible for mining services and infrastructure services, subject to both parties executing the contracts as binding.

Under the five-year mining services contract, which provides for two additional one-year extensions, Downer EDI will be responsible for statutory management and mine operations, drilling and blasting, and load and haul of waste and coal.

The mine infrastructure contract further places Downer EDI in charge of the engineering procurement and construction of on-site infrastructure and preparatory civil works.

Pre-production and planning for the Carmichael project will commence early this year, with mine infrastructure construction set to commence in the fourth quarter of 2015.

First mining is scheduled for the second quarter of 2016 and first coal in 2017.

Adani chief Jeyakumar Janakaraj said the letters of award were the latest milestone for 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,” he said.

“This partnership with Downer EDI 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.

“In selecting Downer EDI as the mining services contractor, we are confident that not only are we well placed to meet our longstanding first coal guidance of 2017, but that we are one step closer to our goal of building a long-term future with Queensland.”

Adani’s mine, rail and port projects encompass the Carmichael mine, near Clermont, both the Carmichael and North Galilee Basin Rail, and the existing Terminal One and soon to be constructed Terminal Zero at Abbot Point, near Bowen.

Grant Fern, Downer EDI chief executive, 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.


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