Adani, Posco sign pact for railway line in Australia.

Adani Mining Pty Ltd. of Adani Group on recently said that it has signed a binding agreement with POSCO E&C, a global construction company and a subsidiary of the South Korean giant POSCO, to develop a greenfield non-electrified standard gauge railway line in Galilee Basin, Queensland, Australia.

The rail project will lead to the opening of the Carmichael mine project, of the Adani Group. It will also provide vital opportunities for Australian industry involvement. The project North Galilee Basin Rail (NGBR) is expected to commence in early 2015.

The agreement gives exclusive rights to POSCO E&C to be the EPC (Engineering, Procurement and Construction) contractor for the 388km greenfield project. The final contract will be executed by the end of 2014, which will enable POSCO E&C to facilitate the procurement of debt financing as an equity participant. The standard gauge rail line proposes to have a capacity to haul 60 mtpa (million tonnes per annum). Adani and POSCO E&C will jointly manage the development of this rail line in Australia.


BS