July 31, 2014 Read More →

Doubts over future of giant Carmichael coal mine

By Stephanie Smail, AM the full story,  ABC Australia radio – “As debate rages over the environmental effects of Queensland’s huge Carmichael coal project, there’s doubts the mine will ever be operational. listen

Indian coal giant Adani has won environmental approval to start what could be the biggest black coal project in Australian history.

But industry experts say the Galilee Basin is too remote, the coal quality is too low and Adani will struggle to find the money it needs to get started.

Stephanie Smail reports, ‘The Carmichael coal mine, west of Rockhampton, would be one of the biggest in the world, producing about 60 million tonnes of coal a year. But India’s Adani Group needs to find the cash to establish rail access and water and power supplies in the remote region first.’

Tim Buckley is from the Institute for Energy Economics and Financial Analysis [states], ‘You’ve got existing coal mines in Australia that are operating right next to a railway line, five times closer to the port than the Carmichael deposit. And yet the owners of those mines are proposing to close them down.

How is it that a mine that is already fully operational, with all of the capital invested already, is considering closing at a time when a mine with none of the capital employed and none of the infrastructure required can in any way make sense?…

The company already has $12 billion dollars of net debt and they have a huge number of projects on the boil in India. They’re requiring another $5 billion or $10 billion worth of capital expenditure over the next five years. So it’s a major question how they’re going to just locate a spare $16 billion dollars to actually make this project happen.’

Link to transcripts

Comments are closed.