18-07-2014, 10:08 PM
Adani taps POSCO E&C to build rail line for $15 bln Australia coal project
MELBOURNE Thu Jul 17, 2014
(Reuters) - Adani Mining Pty Ltd on Thursday said South Korea's POSCO Engineering & Construction Co Ltd will build the rail line for a long-delayed A$16.5 billion ($15 billion) coal and rail project in Australia.
The cost and other details of the contract to build a 388 kilometre rail line for the Carmichael coal mine in the eastern state of Queensland will be set by the end of 2014 under a binding agreement signed on Thursday, Adani said.
POSCO E&C will help fund the rail line by buying an equity stake, Adani said. That could help Adani raise debt funding from South Korea, essential for a project that analysts have said would be uneconomic at current weak coal prices.
"The binding agreement will enable us to develop a cost efficient rail solution and this relationship gives Adani access to the Korean market, POSCO's expertise and capital," Adani Australia Chief Executive Jeyakumar Janakaraj said in a statement.........................
"This is the largest EPC (engineering, procurement and construction) project in the region for POSCO E&C, and we will put in our best effort to maximise our engineering, procurement and financing capabilities to successfully complete the construction," POSCO E&C President Tae-Hyun Hwang said in a statement...........................................
http://in.reuters.com/article/2014/07/17...NO20140717
________________________________________________________________________________________________________________
Adani Mining Pty Ltd
Brisbane, Australia, 17 July 2014
MEDIA STATEMENT
ADANI and POSCO E&C enter a binding agreement to build rail line in Galilee Basin, Queensland
Adani Mining Pty Ltd., of Adani Group, India’s largest integrated private power, port and infrastructure developer, and POSCO E&C, a leading global construction company and a subsidiary of the South Korean giant POSCO, have today signed a binding agreement to
develop a greenfield non-electrified standard gauge heavy haul rail line to open up the Galilee Basin coal reserves in Queensland, Australia.The rail project will lead to the opening of the Carmichael mine project which will deliver in excess of 10,000 jobs, and will also
provide vital opportunities for Australian Industry involvement.
The agreement gives exclusive rights to POSCO E&C to be the EPC (Engineering, Procurement and Construction) contractor for the 388km greenfield standard gauge rail. The binding agreement has set clear pathways to execute the final contract by the end of this
year, and the final contract will enable POSCO E&C to facilitate the procurement debt financing as an equity participant.
POSCO E&C’s commitment for this project reflects the confidence the global partners have in Adani’s long-term investments guaranteeing energy security in India and other emerging markets, while helping to provide job security across the investment region.
Adani Group Chairman Gautam Adani said "The rail project will lead to the opening of the Carmichael mine project which will deliver, in excess of 10,000 jobs, and will also provide vital opportunities for Australian Infrastructure development and contribute to energy
security of India by lighting the lives of millions of Indians."
Adani Australia CEO and Country Head Jeyakumar Janakaraj said: “I am delighted with the way the two teams worked together in a collaborative manner to get this binding agreement signed in a record time. This is the first major step towards finalising the Project’s
construction contracts and we are proud to be associating with a partner of POSCO’s E&C standing. The binding agreement will enable us to develop a cost efficient rail solution and this relationship gives Adani access to Korean market, POSCO’s expertise and capital."
POSCO E&C is one of the world’s largest construction companies and has significant experience in developing rail infrastructure. The North Galilee Basin Rail (NGBR) construction is expected to commence in early 2015.
POSCO E&C President and CEO, Tae-Hyun Hwang stated that “We are delighted to partner with Adani and contribute to the development of the rail infrastructure. I believe the rail project will greatly benefit from this partnership. This is the largest EPC project in the region
for POSCO E&C, and we will put in our best effort to maximise our engineering, procurement and financing capabilities to successfully complete the construction.”
Adani and POSCO E&C will develop this Greenfield standard gauge rail line with a capacity to haul 60 mtpa. Adani and POSCO E&C will jointly manage the development of this rail line. The Queensland Government has declared the rail corridor as a State Development Area. This rail infrastructure is aligned with the Queensland Government policy of strategic infrastructure being located to allow multi user participation and will provide access to other miners, helping unlock further growth opportunities for jobs in Queensland.
http://www.adanimining.com/Common/Upload...cement.pdf
(vested)
MELBOURNE Thu Jul 17, 2014
(Reuters) - Adani Mining Pty Ltd on Thursday said South Korea's POSCO Engineering & Construction Co Ltd will build the rail line for a long-delayed A$16.5 billion ($15 billion) coal and rail project in Australia.
The cost and other details of the contract to build a 388 kilometre rail line for the Carmichael coal mine in the eastern state of Queensland will be set by the end of 2014 under a binding agreement signed on Thursday, Adani said.
POSCO E&C will help fund the rail line by buying an equity stake, Adani said. That could help Adani raise debt funding from South Korea, essential for a project that analysts have said would be uneconomic at current weak coal prices.
"The binding agreement will enable us to develop a cost efficient rail solution and this relationship gives Adani access to the Korean market, POSCO's expertise and capital," Adani Australia Chief Executive Jeyakumar Janakaraj said in a statement.........................
"This is the largest EPC (engineering, procurement and construction) project in the region for POSCO E&C, and we will put in our best effort to maximise our engineering, procurement and financing capabilities to successfully complete the construction," POSCO E&C President Tae-Hyun Hwang said in a statement...........................................
http://in.reuters.com/article/2014/07/17...NO20140717
________________________________________________________________________________________________________________
Adani Mining Pty Ltd
Brisbane, Australia, 17 July 2014
MEDIA STATEMENT
ADANI and POSCO E&C enter a binding agreement to build rail line in Galilee Basin, Queensland
Adani Mining Pty Ltd., of Adani Group, India’s largest integrated private power, port and infrastructure developer, and POSCO E&C, a leading global construction company and a subsidiary of the South Korean giant POSCO, have today signed a binding agreement to
develop a greenfield non-electrified standard gauge heavy haul rail line to open up the Galilee Basin coal reserves in Queensland, Australia.The rail project will lead to the opening of the Carmichael mine project which will deliver in excess of 10,000 jobs, and will also
provide vital opportunities for Australian Industry involvement.
The agreement gives exclusive rights to POSCO E&C to be the EPC (Engineering, Procurement and Construction) contractor for the 388km greenfield standard gauge rail. The binding agreement has set clear pathways to execute the final contract by the end of this
year, and the final contract will enable POSCO E&C to facilitate the procurement debt financing as an equity participant.
POSCO E&C’s commitment for this project reflects the confidence the global partners have in Adani’s long-term investments guaranteeing energy security in India and other emerging markets, while helping to provide job security across the investment region.
Adani Group Chairman Gautam Adani said "The rail project will lead to the opening of the Carmichael mine project which will deliver, in excess of 10,000 jobs, and will also provide vital opportunities for Australian Infrastructure development and contribute to energy
security of India by lighting the lives of millions of Indians."
Adani Australia CEO and Country Head Jeyakumar Janakaraj said: “I am delighted with the way the two teams worked together in a collaborative manner to get this binding agreement signed in a record time. This is the first major step towards finalising the Project’s
construction contracts and we are proud to be associating with a partner of POSCO’s E&C standing. The binding agreement will enable us to develop a cost efficient rail solution and this relationship gives Adani access to Korean market, POSCO’s expertise and capital."
POSCO E&C is one of the world’s largest construction companies and has significant experience in developing rail infrastructure. The North Galilee Basin Rail (NGBR) construction is expected to commence in early 2015.
POSCO E&C President and CEO, Tae-Hyun Hwang stated that “We are delighted to partner with Adani and contribute to the development of the rail infrastructure. I believe the rail project will greatly benefit from this partnership. This is the largest EPC project in the region
for POSCO E&C, and we will put in our best effort to maximise our engineering, procurement and financing capabilities to successfully complete the construction.”
Adani and POSCO E&C will develop this Greenfield standard gauge rail line with a capacity to haul 60 mtpa. Adani and POSCO E&C will jointly manage the development of this rail line. The Queensland Government has declared the rail corridor as a State Development Area. This rail infrastructure is aligned with the Queensland Government policy of strategic infrastructure being located to allow multi user participation and will provide access to other miners, helping unlock further growth opportunities for jobs in Queensland.
http://www.adanimining.com/Common/Upload...cement.pdf
(vested)