From Natasha Chaku, Melbourne

Adani Group’s Australian subsidiary on Wednesday said it has signed an MOU with a South Korean steel giant for the construction of a new strategic terminal at Abbot Point coal port to export high-quality coal globally at competitive rates.

Terminal Zero (T0) will be constructed at the port of Abbot Point near Bowen town, Queensland, as per the Memorandum of Understanding inked between the company and Korea’s POSCO.

“Construction of T0 is a vital step in ensuring that exports of high quality, cost-efficient coal from mines such as Carmichael in the Galilee can be landed in markets throughout Asia competitively and at scale,” the company said.

In a statement, the company said it inked the agreement with POSCO E&C, which sees the Korean firm appointed as the Preferred Engineering, Procurement and Construction (EPC) contractor for Terminal Zero.

“T0 will have a?capacity for 40 Metric tonnes per annum initially with an expansion to 70 mtpa in?its second phase.

The port at Abbot has always been the forefront of Adani’s plans to build a long term future with Queensland,” it said.

“Long the lifeblood of Bowen, expanding the port is key to Adani’s plan to deliver 10,000 jobs in Queensland, opportunities for small and medium sized enterprises in the region, and USD 22 billion in taxes and royalties from our integrated project to be delivered back into frontline services here in Queensland,” the statement said.

In July, POSCO E&C was appointed as the Preferred EPC contractor for Adani’s North Galilee Basin Rail(NGBR) project.

The firm has progressed work packets and subcontracting arrangements promptly, with the transition to the build phase of the project to be realised in the first quarter of 2015, promptly delivering jobs and supply opportunities for businesses in Queensland.

Adani’s Australian Country Head and Mining CEO Jeyakumar Janakaraj said the deal reflected the fruitful partnership already on foot with the NGBR, and the trust both companies had developed in the working together.

“This MOU is the latest in a host of recent announcements that bring our integrated mine, rail and port project closer to first coal in 2017. POSCO E&C is a proven and trusted partner, and we welcome this opportunity to enhance our co-operation with them.

“From our perspective, POSCO E&C’s decision to invest in this key piece of infrastructure reflects the confidence tier one players have in central components of our project such as the port’s expansion,” Janakaraj said.

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