Media Releases

Adani Rail Track Contract Great News for Arrium


Federal Member for Grey Rowan Ramsey said the announcement that the steel rail required for Adani's $21 billion Carmichael coal mine in Queensland will be sourced from the Whyalla steelworks is great for the steelmaker’s future.

The contract was signed today in Whyalla where Adani Australia committed to purchasing $74m of steel for the railway from Arrium.

Ever since it was first suggested that Adani may be able to access a loan from the Northern Australia Development Fund I have been pushing to ensure that Australian taxpayers money be channelled to support the jobs of Australian steelworkers right here in Whyalla,” Mr Ramsey said.

"I have had a meetings with Adani over twelve months ago and have stayed in regular contact since stressing the importance of this contract going to our one and only Australian supplier of rail.

"Since the first day I have received terrific support from Minister Matt Canavan and I am very pleased to have him, Dept PM Barnaby Joyce and Adani CEO Mr Jeyakumar Janakaraj here in Whyalla for this announcement.

“The $74m steel contract to construct the near 400kms of track from the mine to the Abbott Point port can only strengthen Arrium’s value to prospective buyers and ensure a productive future for the Whyalla operation.

"The contract, which is subject to the normal commercial requirement that the Carmichael mine proceeds, involves more than 54,000 tonnes of head hardened rail.

"Most importantly this order comes right at the time final adjustments are being made to potential buyer's bids to purchase the Arrium assets. This is a clear signal that not only can we can supply major contacts anywhere in Australia, it signals also there is a real demand here in Australia for high quality Australian steel and while the Carmichael mine is in Queensland the constructioin of the project benefits all of Australia.

“Coming on top of the Federal Government support for the ore beneficiation plants, the Tarcoola-Adelaide railway, the placing of this order is clear proof the Government is committed to investing in regional Australia, Australian industry and importantly Australian workers.”

Media Contact: Leonie Lloyd-Smith 08 8633 1744

May 4, 2017

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