Companies

Adani arm Bravus strikes coal at Carmichael mines in Aus

Rutam Vora Ahmedabad | Updated on June 24, 2021

The coal will be sold at index pricing as Bravus won’t engage into in transfer pricing, says CEO

After much delay in a major breakthrough for Adani Group, its Australian arm Bravus has struck coal for the first time at the Carmichael mines in Queensland.

The commodity-to-energy conglomerate’s Australian mining division, Bravus Mining & Resources on Thursday announced striking coal in the Carmichael mines, which faced controversy following protests from global environment activists and conservationists.

“Proud of my tenacious team who mined Carmichael’s ‘first coal’ in the face of heavy odds,” Gautam Adani, Chairman of Adani Group wrote in a Twitter post on Thursday.

Adani, who is celebrating his 59th birthday, also said, “There couldn’t be a better birthday gift than being able to strengthen our nation’s energy security and provide affordable power to India’s millions. Thank you, Queensland and Australia.”

Adani became the first Indian company to set up a greenfield mine in Australia.

Announcing the striking of coal, Bravus Mining and Resources CEO David Boshoff, said, “Nearly two years ago today we received our final approvals to develop the Carmichael Mine and Rail Project. We have faced many hurdles along the way, but thanks to the hard work and perseverance of our team, we have now reached the coal seams.”

There are over 2,600 people on the Project in Australia, as the group had fought at multiple levels to secure approvals for the mining project. “Our people have put their hearts and souls into this Project – it is wonderful that we have now struck coal,” Boshoff said.

Bravus looks to export first coal as earlier announced in 2021.

“We’re on track to export the first coal this year, and despite reaching this significant milestone, we will not take our eyes off our larger goal of getting coal to market,” the CEO said.

Bravus had already secured the market for the 10 million tonne per annum of coal produced at the Carmichael Mine. India will continue to be its major destination.

Boshoff also clarified that the coal will be sold at index pricing and the company will not be engaging in transfer pricing practices, which “means that all of our taxes and royalties will be paid here in Australia. India gets the energy they need and Australia gets the jobs and economic benefits in the process,” he said.

India will be a foundation customer for the Carmichael mine and is the fourth largest global user of electricity as well as the source of the biggest growth in global energy demand.

Carmichael coal will contribute to Adani Group’s burgeoning energy portfolio that is designed to create a sustainable energy mix, incorporating, thermal power, solar power, wind power and gas.

Published on June 24, 2021

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