Carmichael Coal Project

IEEFA Research

IEEFA Update: Adani’s ‘Go-Ahead’ on Australian Mega-Coal Mine Is a Stunt

‘This Proposal Is Still a Pipe Dream’; Announcement ‘Theatrics’ Mean Little

Commenting on reports that Adani Enterprises Ltd has given the final go-ahead on the Carmichael mine proposal in Australia, Tim Buckley, IEEFA’s director of energy finance studies, Australasia said today: “An internal investment decision for the Carmichael mine is very different to an externally legally binding financial close. This proposal is still a pipe dream.” […]

IEEFA Update: An Increasingly Cursed Australian Coal Project

IEEFA Update: An Increasingly Cursed Australian Coal Project

Bad Financials, Weak Markets, Policy Headwinds, Social-License Issues, Transparency Questions, Climate Risk: The Many Afflictions Hobbling the Proposed Carmichael Mine

update on Adani’s long-festering coal mine project in northern Queensland that plumbs the depths of the Indian conglomerate’s financials and finds them vastly insufficient for the supposed job at hand. Our report— “Adani: Remote Prospect: Carmichael Status Update 2017”—follows on previous work we’ve done around what would be the biggest new coal mine in the […]

New IEEFA Report – Adani: Remote Prospects

New IEEFA Report – Adani: Remote Prospects

Obstacles to Adani’s Project in Australia Have Only Grown: The Strategic ‘Moment’ for Coal Mining in the Galilee Basin Has Passed; Public Investment Is Ill-Advised; Markets Will Not Support an Unbankable Development

Almost two years ago we published a review in which we raised doubts about the Adani Group’s proposed Carmichael coal mine in the Galilee Basin of Australia and the associated rail and port infrastructure development. The mine would ship coal through the port at Abbot Point in the Great Barrier Reef. Today we’ve published an […]

September 15, 2015 Read More →
IEEFA Study: Corporate Restructuring at Adani Enterprises Enhances Shareholder Value; Marginalizes Australian Coal Project; Better Aligns Adani Group With Transformation of India’s Electricity Sector

IEEFA Study: Corporate Restructuring at Adani Enterprises Enhances Shareholder Value; Marginalizes Australian Coal Project; Better Aligns Adani Group With Transformation of India’s Electricity Sector

Proposed Development of Galilee Basin Project Will Become ‘Collateral Damage’

CLEVELAND, May 5, 2015 (IEEFA.org) — A report published today by the Institute for Energy Economics and Financial Analysis (IEEFA) concludes that Adani Enterprises’ recent corporate restructuring better aligns its parent Adani Group with minority shareholders and with new opportunities emerging in the Indian electricity sector transformation. It concludes also that the restructuring—which vastly reduces […]

May 4, 2015 Read More →
Global Energy Markets Transition Drives Thermal Coal Into Structural Decline

Global Energy Markets Transition Drives Thermal Coal Into Structural Decline

New Research by IEEFA Sees Slowing Demand for Coal and Rapidly Rising Investment in Renewables CLEVELAND, Jan. 14, 2015 (IEEFA.org) — Rapid expansion of renewable energy combined with weakening electricity demand are driving a structural decline in seaborne thermal coal markets, according to a new briefing released today by the Institute for Energy Economics and […]

January 14, 2015 Read More →
Briefing note: The Outlook for Financing for Australia’s Galilee Basin Coal Proposals

Briefing note: The Outlook for Financing for Australia’s Galilee Basin Coal Proposals

Briefing note: The outlook for financing for Australia’s Galilee Basin coal proposals By: Tom Sanzillo, IEEFA Director of Finance

October 22, 2014 Read More →
Briefing note: Fossil fuels, energy transition & risk, July 2014

Briefing note: Fossil fuels, energy transition & risk, July 2014

Briefing note: Fossil fuels, energy transition & risk,  July 2014 (pdf) By Tim Buckley, Director of Energy Finance Studies, Australasia, IEEFA

July 21, 2014 Read More →
Briefing note: Fossil fuels, energy transition & risk

Briefing note: Fossil fuels, energy transition & risk

 Briefing note: Fossil fuels, energy transition & risk (pdf)

June 5, 2014 Read More →
Briefing note: Thermal coal outlook

Briefing note: Thermal coal outlook

Briefing note: Thermal coal outlook (pdf) By Tim Buckley,  Director of Energy Resource Studies, Australasia, IEEFA  

May 15, 2014 Read More →
Briefing note: India power prices

Briefing note: India power prices

Briefing note: India power prices (pdf) By Tim Buckley,  Director of Energy Resource Studies, Australasia, IEEFA

May 5, 2014 Read More →

More News and Commentary

Fraud Case Detail Emerges Around Owner of Proposed Mega-Mine in Australia

The Guardian: A global mining giant seeking public funds to develop one of the world’s largest coal mines in Australia has been accused of fraudulently siphoning hundreds of millions of dollars of borrowed money into overseas tax havens. Indian conglomerate the Adani Group is expecting a legal decision in the “near future” in connection with […]

August 16, 2017 Read More →
IEEFA Australia: The Odds Against Adani’s Mega-Mine Are Growing
and

IEEFA Australia: The Odds Against Adani’s Mega-Mine Are Growing

Project Remains Unbankable and Cannot Proceed Without Government Subsidies

Last week’s news that Commonwealth Bank, Australia’s largest, has ruled out financing for the proposed Carmichael project because of the climate risk it comes with is but the latest in the long drip of events adding to the probability the mega-mine-and-rail complex will never be built. In fact our view has only hardened that Carmichael […]

On the Blogs: Coal Use Trends Continue to Drive Doubts on Adani Project in Australia

Macrobusiness Australia: The justification behind the proposed $1 billion concessional loan from Australian taxpayers to Adani to build the Carmichael coal project has taken another hit today with reports that India’s appetite for coal is waning. From The Australian: “In the last two years, coal consumption has slowed to its lowest level in two decades, […]

August 10, 2017 Read More →

Decisions to Curb Coal Use in South Korea, Japan and Taiwan Will Have Profound Effects on Australian Coal Export Market

Michael Slezak in the Guardian: As Australia mulls the building of its biggest-ever export thermal coal mine, its biggest foreign buyers look set to reduce their consumption, driving down the price of Australian coal, and the profitability of its mines. Japan, South Korea and Taiwan together buy about 30% of the world’s exported thermal coal, including 70% […]

July 12, 2017 Read More →

Banks Aren’t Interested in Adani’s Plans for Queensland Mines

Kiran Stacey, Simon Mundy and Jamie Smyth for Financial Times: Gautam Adani, the Indian billionaire, is facing questions over the funding for the planned A$16.5bn coal mine in Australia weeks after his company gave the final go-ahead for the long-delayed scheme. Indian conglomerate Adani Group announced final approval for the huge Carmichael development on June […]

July 5, 2017 Read More →

Adani’s Australia Problem

Business Standard (India): Indian Energy Minister Piyush Goyal said the country already had enough coal without the Adani mine. “We don’t wish to import coal from anywhere in the world. We have sufficient coal capacity in our country,” Goyal told ANI. Goyal’s statements contrast with the Adani group’s stated objective of the project. The group […]

June 13, 2017 Read More →

IEEFA Australia: Adani’s ‘Pit-to-Plug Strategy’ Is Fraying at Both Ends

‘Defer, Delay and Pray’ Appear to Be the Unspoken New Watchwords for the Company That Would Build the Carmichael Coal Project

Gautam Adani, the chairman of the Indian conglomerate Adani Group, has long argued that the Carmichael coal proposal in the Galilee Basin of Australia is a key part of his company’s “integrated pit-to-plug strategy.” The Adani logic for the Carmichael project assumes that the traded price of seaborne thermal coal is irrelevant to the commercial […]

June 12, 2017 Read More →

Adani’s Financials on Australian Coal Project Are Falling Apart

Business Standard (India): Even as the Adani Group is gearing up to invest $16.5 billion in a coal mine project in Australia, previous investments by GVK Power & Infrastructure and Lanco Infratech in similar projects have resulted in financial mess, according to bankers and analysts. While GVK’s yet-to-be-developed mine would require investments of another $500 […]

June 9, 2017 Read More →

IEEFA Update: Adani’s ‘Go-Ahead’ on Australian Mega-Coal Mine Is a Stunt

‘This Proposal Is Still a Pipe Dream’; Announcement ‘Theatrics’ Mean Little

Commenting on reports that Adani Enterprises Ltd has given the final go-ahead on the Carmichael mine proposal in Australia, Tim Buckley, IEEFA’s director of energy finance studies, Australasia said today: “An internal investment decision for the Carmichael mine is very different to an externally legally binding financial close. This proposal is still a pipe dream.” […]

IEEFA Australia: Adani Can’t Seem to Get the Public Subsidies It Requires for Its Carmichael Coal Project

Further Evidence That a Mine Proposal Is Unbankable

In saying that it has deferred its investment decision on its Australian Carmichael coal proposal because the Queensland Government hasn’t granted it yet another subsidy, Adani Enterprises is demonstrating once more that the project is unbankable. We’re not aware of a single private financial institution that has endorsed the proposal, which suggests to us that […]

May 23, 2017 Read More →