Virendra Pandit

Ahmedabad, July 14

The Adani Group-promoted Mundra Port and Special Economic Zone Ltd (MPSEZL) has been selected as “preferred proponents” to develop a coal exporting terminal at Dungeon Point in Australia, a company official said on Wednesday. This is the first time that Australia has decided to lease out land for development of ports to a non-Australian company. MPSEZL is likely to develop two terminals there. The possible investment involved, depending upon the extent of mechanisation and other parameters, could be up to Rs 12,000 crore. “In India, this investment is Rs 60 – 100 crore for a million tonne,” sources familiar with the development told Business Line. Asked about any possible plans to acquire coal mines, the sources said the Adanis are already scouting for ports and mines in Australia and South Africa but nothing has been finalised so far. The lease of the terminal will be for 99 years. The company, which had filed an expression of interest (EoI) nearly five months ago, received a communication from North Queensland Bulk Ports Corporation (NQBP), representing the Government of Queensland, Australia, this afternoon.

It informed that MPSEZL has been selected as the “Preferred Proponent” for the development of new coal export terminal at Dudgeon Point, Australia, along with another proponent, Dalrymple Bay Coal Terminal (DBCT).The “Preferred Proponent” status provides the Adanis the right to develop a terminal of capacity to handle at least 30 to 60 million tonnes per annum (mmtpa), subject to technical and commercial feasibility and environmental approvals.

As a next step MPSEZ, along with NQBP and DBCT, would prepare a master plan for coal export infrastructure/terminals at Dudgeon Point to assist the State of Queensland and NQBP to evaluate options for meeting development demands. The master plan will involve, among other things, costs associated with the development of the terminals, the land required for it and the feasibility study, which is likely to be completed by October this year. Depending upon this study, the two proponents would take decisions about developments of the terminal(s), and work out the kind of investments required. Dudgeon Point is located within the Bowen Basin, the premier coal producing basin supplying the world with coking coal, Pulverised Coal Injection (PCI) grade and high grade thermal coal. It is located nearly 15 km south of Mackay on the Queensland Coast and lies within the Port of Hay Point about four km north of the existing coal terminals of Dalrymple Bay and Hay's Point.

(This article was published in the Business Line print edition dated July 15, 2010)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.