Here's what we know about Adani and the Carmichael mine project

Updated December 06, 2016 11:56:28

With approval granted for a permanent rail line and a temporary construction camp, Adani's much-touted and often doubted Carmichael coal mine has taken a large step closer to becoming a reality.

So who and what is Adani?

A multinational company based in Ahmedabad, India, Adani Group builds and operates mines, ports and power plants. The company has operations in coal, gas and renewable energy across India, Indonesia and Australia.

Adani Mining chief executive Jeyakumar Janakaraj has faced scrutiny for failing to disclose that a company he ran in Africa was guilty of serious environmental breaches, despite being asked to do so in a letter from the Federal Environment Department.

But Queensland Mines Minister Anthony Lynham has expressed confidence Adani will operate its Australian mine safely and that the Great Barrier Reef will be protected, with "200 stringent conditions placed on this project".

How big is the mine project?

Adani's $22 billion Carmichael mine will be built in the Galilee Basin, west of Rockhampton.

Once complete, it will be Australia's largest coal mine, with six open-cut pits and up to five underground mines.

The Queensland Government estimated the life span of the mine to be between 25 and 60 years.

The newly approved 31.5 kilometres of permanent rail line will form part of a 389-kilometre heavy haul line from the mine in the Galilee Basin to the Abbot Point port, south of Townsville.

Where will the coal go?

The mine will supply Indian power plants with enough coal to generate electricity for up to 100 million people.

Coal from the mine will be processed through the Abbot Point Coal Terminal, off the coast of Bowen in north Queensland.

How many jobs for construction and operational?

The company predicts the first stage of construction will provide more than 500 positions, mainly for planners and engineers.

Once operational, it is estimated the mine will provide 2,500 to 3,000 full-time jobs.

Adani has estimated the entire project will create 10,000 jobs through direct and indirect employment.

However, in 2015, Adani Consultant Dr Jerome Fahrer told the Land Court in Brisbane the mine would actually create fewer jobs, a net figure of 1,464.

An Adani spokesman said Dr Fahrer's job figures do not match its claims, because he did not include the construction and operation of rail and port infrastructure.

Who has challenged the mine legally and why?

Environmental groups have listed multiple concerns about the mine's impact on the Great Barrier Reef and the expansion of Australia's coal sector.

Over the past six years, Adani said there had been more than 10 appeals and judicial processes. Here are some of the highest profile Federal Court cases:

* The first approval of the mine and additional rail track was set aside in August 2015 because then federal environment minister Greg Hunt had not properly considered advice about two vulnerable species, the yakka skink and the ornamental snake. Mr Hunt re-approved the mine in October 2015.

* The Australian Conservation Foundation argued the Federal Government failed to consider whether burning coal from the mine and the resultant climate pollution were inconsistent with international obligations to protect the Great Barrier Reef, but this was dismissed.

* A Queensland Indigenous traditional owner argued a determination over mining leases was incorrect, but this was also dismissed.

What's the projected benefit to the economy?

Adani estimates the project will generate at least $16.5 billion for the Australian economy, but the final figure is dependent on the mine's lifespan.

The State Government said it expected to receive many millions of dollars in mining royalties, which would be spent on upgrades for schools, hospitals and roads.

"Resources are extremely important for everyone in Queensland," Mines Minister Anthony Lynham said.

When will construction start?

Earlier this year, the Queensland Government gave the project critical status to fast-track environmental and other approvals.

The Government still has to approve a water licence and minor applications for power and road access before construction can start.

Adani has said it hopes work on the mine will start in the first half of 2017.

Topics: coal, regional-development, mining-industry, mining-rural, mining-environmental-issues, brisbane-4000, rockhampton-4700

First posted December 05, 2016 19:34:57