Why the Adani mega mine is welcome news in Townsville

It is welcome news to the local community that Adani will base its Carmichael coal mine headquarters in Townsville , which has struggled with job losses and high unemployment over the last couple of years. The Townsville Bulletin reports:

“Townsville will be at the centre of the $21 billion development, tipped to become the biggest mine in Australia, and function as the regional headquarters for operations across the North.

The Bulletin understands this arrangement includes setting up the city as a major FIFO hub housing about 1500 workers who will be regularly flown to the mine.

Further employment opportunities will be created through a cutting-edge remote operations centre where driverless machinery and mining technology will be run from Townsville.

As many as 500 white-collar jobs are also expected to be announced and Adani has committed to not using workers with 457 visas.”

Undeniably this is fantastic news for the Townsville region, although I do not expect the project will fully make up for job losses in recent times. Nonetheless, it will inject some much needed money and confidence into the region.

Townsville’s economy has certainly been struggling in recent times. Over the twelve months to October, the Townsville regional unemployment rate averaged 10.6 percent, compared with a State average of 6.1 percent (see Queensland Treasury’s regional labour force brief). And the Townsville region has lost in the order of 10,000 jobs (first chart below) with an associated collapse in the employment-population ratio (second chart below).

townsville_employment_oct16

empl_pop_ratio_townsville_oct16

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3 Responses to Why the Adani mega mine is welcome news in Townsville

  1. Glen says:

    Gene whilst I am a resident of Townsville and the jobs up this way are welcome, I hope the decision by Adani is a transparent one and not swayed by govt interference or inducement. What the downturn in Townsville has shown is the economy here isn’t as diverse as many believed and if Townsville is to diversify its economy then govt interference isn’t conducive to achieving this outcome. The basic requirements for this still haven’t changed, we still have a council with a very anti developement attitude, an airport that is going backwards and has less passengers than 5 years ago despite tourism growing everywhere else, and a reactive business sector rather than a proactive one. I hope private enterprise take the opportunity to leverage off this, but I have my doubts, I was at a govt breakfast this morning and they announced that out of the 330 EOI for the supply of goods and services for the new stadium here only 78 were from Townsville, the govt is here virtually begging for Townsville businesses to get involved, it shouldn’t have to do that and the person making the presentation was honest in their disappointment to date.

  2. White Elephant says:

    Has anybody checked to see how limited the ability is for Adani to fund any of this? Anybody got a copy of the bankable feasibility study that was promised years ago?

    This project has zero credibility (or bankability)

    Cargo Cult economics

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