Assignment 2 Report FInal

CARMICHAEL COAL MINE AND RAIL PROJECT 

SRM181 PROJECT MANAGEMENT 1 

i 

Produced by Group B02 

Published on 11 th of January, 2019 

Word count 4,482 

Group B02 Members: 

Andy Chiang 214451296 

Lijia Liu 217338891 

Ryan Sullivan 218400638 

Tim Torode 217300963

SRM181 - PROJECT MANAGEMENT 1 

(This page was left blank intentionally) 

CARMICHAEL COAL MINE AND RAIL PROJECT 2


EXECUTIVE SUMMARY 

This report investigated the initiation and planning stages of the Carmichael Coal Mine and Rail Network Project. 

The report undergoes a critical analysis on these stages, and then provided some recommendations on how Adani 

Australia could have better handled the project. The results from the critical analysis has identified a couple of major 

concerns. Firstly, there are no clear conflict management plan in place, secondly there are no kept record of any 

agreement between organisations. Furthermore, there are no in-depth environmental impact analysis provided to 

the general public. There was no focus group or interviews conduct for data collection, and experts were not involved 

for their future trend prediction. There is clearly a decreasing of coal uses and many countries have agreed to reduce 

coal usage. The report concluded by recommending Adani Australia to incorporate focus groups to discuss plans 

and outcomes, furthermore, to use brain storming sessions to overcome obstacles and create solutions to problems. 

It is also recommended to use checklists to follow procedures for tasks to be completed. 



TABLE OF 

CONTENT 

00 | EXECUTIVE SUMMARY 3 

01 | INTRODUCTION 5 

02 | PROJECT SUMMARY 6 

2.1 | STAKEHOLDERS 7 

03 | INITIATION STAGE 8 

04 | PLANNING STAGE 11 

05 | CRITICAL ANALYSIS 13 

06 | CONCLUSION 15 

08 | REFERENCE 16 



INTRODUCTION 

The purpose of this report is to analyse, investigate and focus on the initiation and planning stage of the Carmichael 

Coal Mine and Rail Project. This report contains a concise summary of the project and the details of all stakeholders, 

and how they influenced the project. Furthermore, the report investigated what information or data was ignored, 

and what activities was completed during the initiation and planning stages. The last part of the report provides a 

critical analysis and recommendations on the both stages by comparing to the best practices (PMBOK). 

In terms of the structure of the report, the report will begin with a summary of the project and then follow by 

information on the stakeholders. The second part of the report will focus on the initiation stage (in relations to 

what activities was completed), and what information and data was ignored during this stage, The third part of 

the report will be focusing on the planning stage, and again what information or data was ignored during the 

planning stage, The forth part is the critical analysis of both stages and comparing the findings to best practices 

(PMBOK). The last part of the report will provide recommendations to these two stages. 



PROJECT SUMMARY 

In September 2018, Adani Australia proposed the Carmichael Coal Mine and Rail Project. This project aims at 

constructing a rail network that will transport coal from Galilee Basin to Abbot Point Port. The proposed rail network 

will be a narrow-gauge rail line that will be approximately 200km long and will connect the Carmichael mine to the 

port using existing rail infrastructure. By using existing rail network can fast-track project delivery and reduce cost. 

Previously the company has proposed a similar project, but the plan was to build a 388km standard gauge railway 

instead of 200km narrow gauge railway. This new proposed plan will utilise the existing rail infrastructure. (Adani 

Australia, 2018) 

Many Asian countries have growing energy demands and may be interested in this project. (Adani Australia, 2018) 

Adani Australia plan to take advantage of this market and opportunity. This project could also potentially create at 

least 6350 jobs, however a member of the Wangan and Jagalingou people was trying to put a stop to this project. 

Adrian Burragubba filed a challenge to the Federal Court; however, the Federal Court has dismissed this challenge. 

Adrian believe that the decision made in April 2015 by the National Native Title Tribunal, relating to the proposed 

granting of two mining leases, was made incorrectly. (Kos, 2016) He argued that the approval of mining leases would 

extinguish native title over parts of the group › s lands. He then further argued that Adani misled the tribunal about 

the economic benefits the mine would create and therefore the tribunal made the wrong decision. However, Adani 

said, the company have worked closely with traditional owners and the majority supported the project. Furthermore, 

Justice John Reeves concluded that none of Mr Burragubba›s grounds of review had merit. (Kos, 2016) 

Description 

Open-cut and underground coal mine with a yield of 60 million tonnes per annum and a 189km railway line. 

Proponent 

Adani Mining Pty Ltd 

Carmichael Rail Network Pty Ltd (joint proponents) 

*Both wholly owned subsidiaries of Adani Australia, part of the Adani Group 

Locations 

Mine: 

Railway line: 

Galilee Basin (160 km north-west of Clermont) 

From Galilee Basin the mine to Moranbah, where it will join the existing Goonyella rail system, 

connecting to coal terminals at the Port of Hay Point (Dudgeon Point expansion) and the Port of 

Abbot Point. 

Local Governments 

Isaac Regional Council (where the majority of mine and rail is located) 

Charters Towers Regional Council (small portion of mine is located) 

Project Cost 

Approximately $16.5 billion 

Potential Job Creation 

Mine: 

Up to 1075 (construction) 

Up to 3800 (operational) 

Railway line: Up to 1400 (construction) 

Up to 120 (operational) 

(The above information are from Queensland Government, 2018) 



2.1 

Stakeholders 

The stakeholders for this project and their influences are listed below: 

Adani Australia 

CEO 

The role of a CEO is to make sure the company will gain economic benefits via 

proposing potential projects to board members, and to form project teams and get 

this project funded. 

Board Members 

They decide what is best for the company and therefore approve or disapprove the 

propose project. 

Investors 

Provide funds to this project. 

Shareholders 

Provide funds to the company, and in return the shareholders get some money from 

the company›s profits. 

Design Team 

This team (for example Architect, Civil Engineers, Structural Engineers, and Mining 

Engineers) will determine if this project can be delivered. They will consider cost, 

budget, the existing property condition, town planning requirements and more when 

coming up with a design or a plan. 

Project Managers 

Make sure the project is delivered on time and is done in a way that is cost effective and 

efficient. 

Australian Government 

Regional Councils (Isaac Regional Council and Charters Towers Regional Council) 

The Australian Government plays an important role, as they determine if this project will be approved or not. The 

regional council will be the one to give out permits or any development approvals. 

General Public 

Traditional Land Owners and Local Communities 

Obtaining mining leases would requires working along with traditional land owners and establish a good longterm 

relationship with the traditional land owners. 

This scale of project will greatly impact the local communities and it will also create jobs that need to be filled. 

Therefore, local communities’ opinions are important and need to be listened. 

Potential Buyers - Asian Countries 

This is important because so much money has been invested and therefore it is important for Adani to make sure 

there are still the demand for coal when this project is completed. 



INITIATION STAGE 

Selection site and function 

Firstly, the Adani Company selected site of Carmichael Coal Mine located at north west of Clermont 160 km and the 

coal rail network established at Abbot Point Port is 25 km north of Bowen (adani 2018). The coal rail designed up 

to previous draft. It is a narrow gauge rail, the function of the coal rail is that every year the Carmichael Mine could 

carry out 4000 million tonnes to make ensure the Carmichael Coal Mine yearly production rate 27.5 million tonnes 

per year (adani 2018). The length of the narrow gauge rail is 200 km, it using current railway facilities for running 

between Carmichael Coal Mine to Abbot Point port (adani 2018). Comparing with built a new railway between the 

Galilee Basin and Abbot Point Port, this plan of using existing rail infrastructure is better value for money. The 

benefit of narrow gauge rail line is can make ensure the project delivery, cost savings, moreover can satisfied with 

growing energy demand in Asia countries. On the other hand, when the Carmichael Coal Mine permit construction 

operation, at the first stage of produce coal is about 27.5 million tonnes per year. The Carmichael Coal Mine is lager 

comparing with the coal mine in the Hunter Valley and the Bowen Basin. 

The Carmichael Coal Mine will become the 125th with huge producing of coals of Australia (adani 2018). By paying 

taxes and royalties of the Carmichael Coal Mine that is about billions of dollars each year which could help Australia 

governments to establish the public facilities, such as new schools, hospitals even for new roads of Queensland. The 

Adani company wanted to upgrade Goonyella line to support Abbot Point line so that rising production capacity of 

the Carmichael Mine, this line will be carrying up to 50 million tonnes and export from the Carmichael Coal Mine 27 

million tonnes per year (adani 2018). 

The initiation stage of investment to the Carmichael Coal Mine 

The Adani wanted to investment to the Carmichael Mine 16 billion dollars, every year could export coals up to 60 

million tonnes (adani 2018). Furthermore, at the first stage, the Adani company planning to export coals from 

the Carmichael Mine for 10 million to 15 million tonnes, the top of coal production achieved 27 million tonnes. 

The total coal produced from 2009-2008 was 190 million tonnes, total value of coal mining production 41.5 billion 

dollars, contribution to Queensland government was 26 billion, the employees of coal mine were 21575(Australia 

Government Department of the Environment 2015). According to analyst’s report, the Adani company wanted to 

start a plan which is called “ultra-capital light” to services the Carmichael Mine. This plan could reduce the early 

stage of the capital. 

Comparing with previous railway designing and new railway designing 

The detail of previous railway designing with rail line for 388 km length, standard gauge for 1435 mm. The first 

stage of railway capability for 40 million tonnes per year. The maximum speed for loaded of rail lines is between 

80 km/hr to 100 km/hr. The service life period of railway is rail track for 50 years, drainage structures for 50 years, 

bridge structures for 100 years. The train consist of 3 locos 220 wagons (Australia Government Department of the 

Environment 2015). 



The difference to new rail designing is the route length about 200 km, narrow gauge for 1067 mm. The maximum 

speed for loaded of rail lines is between 80 km/hr to 80 km/hr. The standard of train consist of new rail line is that 

expected 3 locos 120 wagons. 

The benefit to local governments 

Following with the growing of the Carmichael Coal Mine produce capacity, it will bring more than 1500 direct jobs 

and thousands of other jobs on the mine. Major supply to these areas such as Rockhampton, Townsville, Mackay 

and the Isaac places. The Queensland Resources Council published the annual resources industry economic report 

using economic modelling shows that every direct job of industry in Queensland will created another four and a half 

jobs in related businesses (adani 2018). 

The information which were ignored during the initiation stage 

.1 The fund can not support the Carmichael Mine normal operations. 

.2 About fees and royalty agreement and Guardian Australia of the Carmichael Mine are not signed yet. The 

Adani will face who can pay. 

.3 The Adani not considering for federal election if Labor will be winning it will difficult to agreement for a 

series of royalties uses. Many of miners were not satisfied with Aurizon about capacity for long term 

running. 

.4 The Goonyella line of Abbot Point port does not have enough capacity to support daily running, the 

upgrade costs will become a new question to Adani company. 

.5 The Adani company can not ensure the financing plans and at last can enter into Aurizon network 

successfully. 

.6 As the problem of financing plans cause the competitors costs Adani more than 160000 dollars. 

All the above problems will affect the development of the Adani even for carry out of a series of new plans. These 

questions are very important to the Adani company, it will cause huge damage to itself and local development. As a 

result, some of project will be stop that will affect long term development of the Adani company. 



Concern with the project 

Carmichael Coal Mine and Rail Infrastructure Project of the Adani Company already completed activities and the 

aspects for monitored and controlled. 

18 November 2010 

The project of the Carmichael Coal Mine have been applied for Commonwealth Minister for the Environment 

26 November 2010 

The Carmichael Coal Mine issued coordinated project. Up to “Environmental Impact Statement” required, as the 

coordinator-general Graeme William Newton said the Adani Mining Company to be the proponent for the project. 

6 January 2011 

The Commonwealth Minister for the Environment said the project was a controlled action. 

12 February 2011 to 28 March 2011 

The Adani company made the draft terms for EIS public consultation. 

15 December 2012 to 11 February 2013 

Completed the EIS terms 

26 March 2013 

Completed additional information for EIS 

5th January 2017 

The Adani Company have been passed verification and got approved about development an underground coal 

mine and coal rail link connect with Queensland rail network. According to section 143 of the Environment, this 

project has been passed the Protection and Biodiversity Conservation Act 1999(Australia Government Department 

of the Environment 2017). 

14 October 2015 

The Commonwealth Ministering groundwater network and controlled the sites and environment. 

24 July 2014 

The project was approved by World Heritage properties sections 15 & 12A, National Heritage places sections & 158 

15C, Wetlands of international importance sections 178 & 16, Listed threatened species and communities’ sections 

18 & 18A, listed migratory species sections 20 & 20A, Great Barrier Reef Marine Park sections 24E &24C, A water 

resource, in relation to coal seam gas development and large coal mining development sections 24D &24E(Australia 

Government Department of the Environment 2014). 



PLANNING STAGE 

The planning process of the Carmichael coal mine and train line is an interesting one due to the policies in which 

need to be addressed. The planning for this project needs to address the environmental requirements being how 

to project the animals and how to please the original owners of the land being the aborigines. These items will be 

addressed in the initiation stage as they discover what is required of them. 

Once the initiation stage been completed the planning can continue the is found through management creating 

plans for environmental projection and the development of the project. This information can be found on their 

website under the project descriptions. For example, in the plans for the railway network it covers how to handle 

each species that lives in the area and how to safely ensure the lives of those animals creating an environmentally 

friendly project. After such management processes have been done it is time to move onto the scope being the 

design of the project and how it will be delivered, they are planning to make the railway a gauge design. After will 

be resource management and how this will be obtained. As stated by Adani for resources such as water farmers 

will come first as they don’t want to disrupt them. this is found in Adani’s brochure which covers facts about the 

companies’ approach to sensitive issues such as work. They plan to make the project as short as possible this will 

collide with quality, but they are giving this up for the public being more jobs for Australia. 

When the resources have been found and what needs to be done for the project to continue as it is split in two 

sites in time management. When doing time management, it needs to be decided on which part of the project will 

begin first will be the railway why this is because of how the network needs to connect to the coal mine and the 

port. As this is being done the coal mining facilities will be underway as at the end of the railway there needs to be 

a destination. 

Since the railway is a gauge design which is a more typical looking railway, but the railway will need to be conditioned 

consistently or the network may fail. When splitting the times spent on each property as the cost will go up when 

placing the rails, it shouldn’t take long but the check-ups for if signals are working properly for safety will. 

The area in which will take the longest is the coal mining facility as many people will be working there. After this 

schedule has been created the costs for all the materials and labour required over the expected time frames of each 

project will be given. This then leads into risk analysis of working on these property’s and the effects it will have. 

From here the plan will be obtained as the time and order of each task will be outlined with the relevant issues this 

will include the environmental management to ensure the safety of the wildlife. This plan will then be submitted 

for approval. 

The planning process in which has been reviewed by Carmichael highlights important questions in which they 

have asked listed in a table for the mining project “are the project objectives satisfied” (Adani, 2014, Carmichael 

coal project ground water flow model independent review, page 2). It provides the answer and then where to find 

said information in the document. Overall the planning section in the document being Carmichael coal project 

groundwater flow model has 10 questions in review. 

The Carmichael mine and rail project has a diagram for how all their plans intersect with each other. This goes 

from environmental, general, technical, and health/safety plans. It covers each systems management plans which 

then influences the plans that are made to construct the railway and mining facilities. It is easy to explore how 

the Carmichael group approaches the tasks and how their plans connect to each other through the course of the 

project and after. Other systems in which have been provided are quarries and offsite infrastructure as these are still 

going to be used within the project this all can be found in the Carmichael coal mine and rail project: Coordinatorgeneral’s 

evaluation report on the environmental impact statement. 



The plan for the Carmichael coal project is being delayed by the morality and the protests of building on the land and 

destroying it. This is due to the land being land of the aborigines and pressures from the Queensland government. 

These are mainly due to how papers haven’t been signed off on and Adani’s desire to start the project immediately 

is causing tension due to the unsigned papers and not wanting labour government to come into power. This is 

highlighted by the guardian with the article also touching on the fact at that time they still hadn’t contacted Aurizon 

which by law is required to enter negotiations with Adani this was December 1st, 2018. “relations between Adani 

and the Queensland government have become uneasy in recent months. The parties have not yet signed a royalty 

agreement” (the guardian,2018). 

Overall errors that came from the planning of the Carmichael coal and railway project can be found in the way in 

which they have managed time as this is highly notable with their lack of awareness of the community in which 

they want to develop land on. Other notable factors in which this can be found is in how slow they have been to sign 

agreements and how they fear the labour government. It can easily be found that they ignored the community and 

the Australian government resulting in the length of the project this is highlighted by campaigns that are trying to 

stop them from destroying the land due to the cultural significance to the people. This campaign was created by 

Adrian Burragubba on community run to protect the land and his people’s culture. The resent for the project is also 

highlighted in the text “we DO NOT consent to the Carmichael mine on our ancestral lands.” (Adrian Burragubba, 

2018). 

When reviewing the project errors can be found in the way in which Adani organisation and how the Australian 

community functions. How this has affected Adani is through research management and time these heavily 

influence plans for when a project can start and when other companies can work on the project. Why other 

companies have issues when working on the property is since there wasn’t a time plan associated with the project 

due to delays and now furthermore the project may not even go through due to a campaign started by Adrian 

Burragubba. Ways in which the community has affected the project is through water as the traditional owners don’t 

want Adani to destroy the land and use all the water for future generations. Another way in which Adani failed was 

commitment this is due to how the company was afraid of labour government coming into power. This would have 

affected the schedule of the plan. Overall the errors in which Adani has made during the inhiation of the project has 

majorly affected the planning stage so much so that the project may never be complete. 



CRITICAL ANALYSIS 

The Carmichael Coal and Railway project is on the brink of being shut down due to some poor preparation conducted 

in the planning and initiating stages. There are three main concerns that the Adani organisation are facing that 

could lead to the potential shutting down of their long running project. These three reasons are the Wangan and 

Jagalingou people, ‘the traditional owners of the land in Queensland’s Galilee Basin’ (Community Run, 2015), do not 

want the mining project to destroy their land and history. The environmental impact that the mine will have on the 

climate, water supply and Australia’s favourite tourist attraction, the Great Barrier Reef will be too damaging and the 

impact will greatly outweigh the benefits that the mine can produce. Lastly, the final reason that the mine is on the 

brink of shutting down is the reliance and usage of coal is declining and alternative fuel sources are now becoming 

more popular and being used and developed. 

The first issue that the Adani project faces is getting approval and consent to build their mine and railway on the 

Wangan and Jagalingou (W&J) peoples land, who state they are the traditional owners of the land. In Adani executive 

statement regarding the mine they have identified that ‘the project affects four native title/aboriginal party areas’ 

(Carmichael Coal Mine and Rail project, 2012), and had ‘engaged with each of the relevant groups and established 

agreements with each party’ (Carmichael Coal Mine and Rail project, 2012). However, the executive summary never 

states which parties have been engaged with made agreements with, furthermore the Adani Cultural heritage 

project plan has not stated what has been agreed upon and if any compensation has been paid to the W&J people. 

By not having what agreements have been made and what has been discussed it does not provide a record that 

both parties agree on. Adani have underestimated how much impact that the mine will have on the W&J people 

and their land, this is evident through court document that the mine only affects ‘%0.00082 of the claim area’ 

(ABC news, 2018). This shows the lack of understanding that Adani has shown towards the W&J and have not used 

correct techniques that a planning and initiating stage should have. The Project Management Body of Knowledge 

(PMBOK) states that a key technique for initiating and planning is ‘conflict management’ which can be used to 

‘bring stakeholders into alignment on the objectives’ (Project Management Institute, 2017), something Adani has 

clearly not done with the W&J people. If Adani had used this technique then this situation could have been avoided, 

or could have been fixed sooner and court hearings would not be necessary. 

The impact that the mine and railroad can have on the Australian environmental has been greatly underestimated 

by Adani as they have not accurately predicted how the mine will affect the surrounding environment. In Adani’s 

executive summary it outlines where they will be sourcing their water from, however, they have not specified how 

much water will be needed for the mine to operate correctly. Coal mining has a heavy reliance on water for it to 

operate, and uses it for a whole range of mining activities and therefore will use a large amount of water. Reports 

from The Guardian suggest that for each tonne of coal that is produced, an outstanding 250L of freshwater and an 

estimated 12bnL per year (The Guardian, 2017). Water is considered to be a precious resource in Australia, and with 

the estimated water usage that the mine will use, there is a realistic chance farmers and dams that are in proximity 

to the mine may be affected and will not have any water. Again, Adani has failed to accurately estimate how their 

mine may affect people indirectly and how their project could affect a large radius then the one they are looking at. 

Another environmental impact that Adani will impact is the climate change and the amount of CO2 that is being 

released from the coal mine with an estimated ‘4.73 Gt CO2 emissions over the project lifetime’ (Meinshausen, 2014) 

or ‘121 million tonnes of deadly carbon dioxide emissions ever year’ (Casule, 2015). These emissions would result in 

raising the earth’s temperature to potentially °2C, which Adani states would be under the international limiting 

target (Meinshausen, 2014). However, Adani fails to recognise that an increase of °1.5C in the earth’s temperature 

will be detrimental to the great barrier reefs survival (The Guardian, 2017). Adani has failed to adequately determine 

how the CO2 emissions may indirectly affect the survival of the Great Barrier Reef, which is listed as a World 



Heritage Place (UNESCO, 2019). Adani has unsuccessfully determined how much environmental impact their mine 

could potentially have on the Australian eco-system, and the Great Barrier Reef. Adani should have employed two 

techniques from the PMBOK which are focus groups and interviews which would have allowed them to gain a 

better understanding of how the mine may indirectly affect the environment. 

Adani has also failed to accurately determine whether or not coal will be a primary fuel source in the future, and 

whether or not alternative fuel sources will be preferred over coal. In late 2018 over 200 countries agreed to reduce 

the amount of coal being used and take ‘a step towards the age of renewable energy’ (EURACTIV, 2018). With the 

agreements main goal of cutting greenhouse gas emissions, it has made the coal industry decline in recent years 

and potentially impractical and needless in years to come. This will make the Carmichael mine useless in the future 

and a waste of money and time for construction. Again, Adani did not use proper planning techniques and did not 

use expert judgement and interviews, as suggested by the PMBOK, to gain a better understanding and to predict 

the future of fuel sources and coal. 



CONCLUSION 

In review of the critical analysis, the main problems that arose for the Carmichael mine and rail project related back 

to poor execution of the planning and initiation stages, and if these were done correctly, these problems could have 

been avoided. Firstly, Adani and the stakeholders did not share the same ideas about what was occurring with the 

mine and rail project, especially with the W&J people. It is recommended to improve the planning and initiating 

stages, that Adani should organise a focus group meeting which would allow all stakeholders to raise their concerns 

and work through any problems. These focus groups would also have worked to gain knowledge and concerns from 

local farmers and environmental organisations about the indirect affects that the coal mine could have on the ecosystem. 

Following on from this, after all concerns have been raised and data collected, Adani could have had brain 

storming sessions with industry experts to understand and solve the problems that were occurring. Finally, Adani 

should have adopted a checklist to help guide the project managers into what tasks need to be completed first 

before they begun building the project, and having problems arise throughout the building process. 



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