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Carmichael rail project approved

World Coal,

A 300 km railway, part of the massive Carmichael coal mine scheme, has been approved by the Queensland state government.

Adani’s North Galilee Basin Rail project, which is estimated at costing AU$ 2.2 billion to build, will link its recently approved Carmichael coal mine with the east coast port of Abbot Point.

The railway could also link other coal mines in the Galilee Basin to the port.

"Following the Commonwealth Government's approval of the Carmichael mine in recent weeks, Adani welcomes today's approval by the Queensland Coordinator General of the North Galilee Basin Rail project," a company spokesperson said.

Adani’s project is one of huge undertaking, as the AU$ 16 billion Carmichael coal mine, if built, will be the largest in Australia. Once completed, the mine would produce 60 million tpa of coal.

Current views from the vast majority of analysts are that the project would be “unprofitable at current coal prices”, according to the Sydney Morning Herald.

However, Indian firm Adani remains committed to pushing ahead with the scheme as the company looks to supply coal to power plants in India.

"Adani looks forward to continuing to work with our project partners and all levels of government to see this through," Adani said in a statement.

"The NGBR represents a significant milestone for infrastructure development in Queensland. The state's first standard gauge rail line, it will underpin greatly expanded and vital export opportunities across the basin, providing a lasting legacy of infrastructure to this state beyond our already significant port and mine investments here," the statement said.

The proposed railway will be able to transport 100 million tpa of coal.

Queensland Deputy premier, Jeff Seeney, said up to 2400 jobs could be created as the standard gauge Greenfield rail line is constructed. 

Edited from various sources by Sam Dodson.

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