Downer EDI wins $2bn Adani project

Downer EDI has won a $2 billion package of work on Adani Group's controversial Carmichael coal mine in central Queensland, involving the construction of on-site infrastructure and provision of mining services.

Adani has granted two Letter of Award to Downer, with both subject to the parties executing binding contracts followed by pre-production and planning in early 2015.

The mining contract, which is set to last between five and seven years, will see Downer provide services including mine operations, drilling and blasting and coal and waste haulage to the mine.

Downer also will be responsible for the engineering, procurement and construction of on-site infrastucture and preparatory civil works.

The mine infrastructure construction will commence in the fourth quarter of 2015, while first mining is scheduled for the second quater of 2016 and first coal in 2017 

"These projects will deliver vital export opportunities for Queensland, 10,000 jobs and $22 billion in taxes and royalties" Adani CEO Jeyakumar Janakaraj said.

The $10 billion Carmichael mine, which has been a target for environmentalists, will be one of the biggest coal mines in the world.