Melbourne: Adani Mining Pty Ltd, a part of Adani Group, and POSCO E&C Thursday signed a binding agreement to develop a greenfield rail line to open up the Galilee Basin coal reserves in Queensland, Australia.
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 project.
POSCO E&C is a leading global construction company and a subsidiary of South Korean giant POSCO.
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.
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 ..."
Adani Australia CEO and Country - Head Jeyakumar Janakaraj said: "This is the first major step towards finalising the project's construction contracts ... The binding agreement will enable us to develop a cost efficient rail solution."
The North Galilee Basin Rail (NGBR) construction is expected to commence in early 2015.
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 Strategic Development Area.
