Part of the DIploma in Project management is to review what other project managers have done in the past to learn from their mistakes. Below Australian students are reviewing the initiation stage of Carmichael Coal Mine and Rail Project starting with the background and an overview of the project. This project was set up by the Queensland government and other stakeholders. If you enjoy the idea of studying Project Management class details here and enroll in a Diploma in Project management.
Initiation Stage Overview:
Background Initiation Overview:
The Carmichael Coal Mine and Rail Project is an approved combined open-cut and underground coal mine, located in the Galilee Basin of central Queensland, that is designed to deliver coal exports to multiple countries across Asia, including India, Vietnam and China. Initial costs of the project were expected to reach $16.5 million, making it the largest thermal coal mine in Australia. This meant the project was expected to deliver 60 million tonnes of coal a year, reaching around 2.3 billion tonnes of coal over a 60-year period.
Unfortunately, due to a lack of finance available, the mine has been dramatically downsized in order to be financially viable. Therefore, the cost has been reduced to only $2 billion. This has also reduced the amount of coal that the mine is expected to produce down to 27.5 million tonnes of coal per year. As the rail line has been approved for a capacity of 40 million tonnes per year, the reduced number of coal exports per annum appears to physically possible as opposed to the 60 million tonnes initially planned.
The other part of the project is to build a privately owned, narrow-gauge rail line, 200km in length that will connect with the already established Azurian rail line, delivering the coal to Abbott Point Port Terminal ready to be exported. As the Azurian rail line is state government owned, it is unclear who is will be responsible for future upgrade costs.
Initially, the project was planned to supply 10,000 jobs impacting on the surrounding communities of Townville, Rockhampton, Mackay and Bowen. However, as the project size and output has been reduced, the availability of jobs has been scaled back to 7000. Despite this drop, the project will demand jobs in multiple professions to accommodate a wide range of duties. Project facilities include open-cut and underground mines, a coal handling and processing plant, water-supply infrastructure and a 200km rail line. Additionally, the project will incorporate off-site infrastructure including a worker’s accommodation village and an airstrip.