Carmichael Coal Project

IEEFA Research

IEEFA Australia: Adani Is Said to Seek Financing From a Chinese State-Owned Enterprise

'New Geopolitical Questions for an Already Highly Controversial Project'

Nov. 2, 2017 (IEEFA) — A Chinese government-owned enterprise is being courted as a new partner for Adani’s proposed Carmichael coal mine and rail project in northern Queensland, according to a research brief published today by the Institute for Energy Economics and Financial Analysis (IEEFA). The deal being sought with state-owned China Machinery Engineering Corporation […]

November 2, 2017 Read More →

IEEFA Australia: Escalating Financial Risk in Adani’s Abbot Point Coal Terminal

Begging the Question as to Why the Government Would Lend Heavily to a Tax-Haven Scheme Controlled by a Foreign Billionaire

Oct. 2, 2017 (IEEFA) — New analysis by The Institute for Energy Economics and Financial Analysis (IEEFA) finds that Adani’s Abbot Point Coal Terminal is excessively leveraged, promises negative shareholders equity, and runs the risk of becoming a stranded asset if Adani’s proposed Carmichael mine does not get the A$1 billion Australian taxpayer subsidy it […]

October 2, 2017 Read More →

NAIF Inadequate Project Assessment and Failure of Public Interest Test

Submission to Senate Inquiry into the Governance and Operation of the Northern Australia Infrastructure Facility

Our research in the context of Adani calls into question the project assessment and approval process of the Northern Australia Infrastructure Facility (NAIF) as it relates to a A$900 million loan request as well as the adequacy of the NAIF’s tests for risk appetite and for whether a project is in the public interest. Full […]

August 23, 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 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

IEEFA has released an update today 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 […]

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 →

More News and Commentary

Key Rail Player Pulls Out of Adani’s Australian Coal Project

Financial Times: Australia’s largest rail freight operator withdrew an application for a A$1bn (US$777m) state-backed loan on Friday to build a rail line to support development of the Galilee Basin, one of the world’s largest untapped coal reserves. The decision by Aurizon represents another setback to Indian mining groups, Adani and GVK Hancock, which are […]

February 9, 2018 Read More →
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IEEFA Update: Adani Stumbles Toward the Last-Chance Saloon

Denied by Its Erstwhile Enablers, an Indian Mining Giant in Australia Is Desperate for Help

The prospect in the New Year for Adani’s proposed Carmichael coal-mine proposal has taken a bleaker-than-ever bent. Following the Queensland government’s veto of the proposed A$1 billion government loan subsidy and after multiple Chinese banks ruled out funding the project, more nails have been driven into the project’s coffin. A month ago yesterday, Downer EDI, […]

IEEFA Australia: More Wheels Fall Off the Adani Mega-Mine Train

Investors and Government Officials Distance Themselves From High-Risk Project

The Adani Group has bounced back time and again with its troubled Carmichael mine proposal, but a run of freshly negative news now puts the project in real doubt. Today the Downer Group, an Australian engineering and infrastructure firm, announced it had relinquished an A$2 billion non-binding letter of award on the project it issued […]

December 18, 2017 Read More →

Adani Cancels $1.5 Billion Contract on Australian Mine Project

Financial Times: Adani Group has cancelled a A$2bn (US$1.5bn) contract with a mining services company for work on its proposed Carmichael coal mine in Australia due to its failure to raise funds for the controversial project. The cancellation of the contract with Downer, an Australian company, on Monday is the latest challenge to hit the […]

December 18, 2017 Read More →

Australian Election Bodes Ill for Adani

The Wire: The Adani group’s chances of getting a $900 million (AUD) concessional government loan — crucial to its Carmichael coal mine project — are approximating close to zero as the Australian Labour Party (ALP) is set to form the government in Queensland — the north-eastern Australian state home to the proposed Adani coal mine. […]

December 11, 2017 Read More →

IEEFA Australia: Adani’s Bad Month

Few Financiers for a Project on the Ropes

The potential for Adani’s Carmichael coal mine proposal in northern Australia took a dramatic turn this week as one major Chinese bank after another ruled out financing the project. The news comes shortly after Queensland state’s Labor Party government promised to block a federal taxpayer-funded loan to Adani if re-elected—and odds are the party has […]

December 8, 2017 Read More →

China Banks Steer Clear of Adani’s Mega Coal Project in Australia

South China Morning Post: Industrial and Commercial Bank of China (ICBC) and China Construction Bank said in separate statements they were not working on the project, after media recently reported that Chinese banks may get involved. Adani was seeking A$2 billion (US$1.5 billion) in financing by March 2018 for the A$4 billion first stage of […]

December 4, 2017 Read More →

Australia’s ‘Kodak Moment’ on Energy Policy

ABC Australia: The woman who led the world to a global climate change agreement has a message for Australia: “You really do have to see that we are at the Kodak moment for coal.” Christiana Figueres, until last year the executive director of the United Nations Framework Convention on Climate Change, doesn’t mean happy snaps […]

November 27, 2017 Read More →
IEEFA India: Peak Coal Demand in 10 Years

IEEFA India: Peak Coal Demand in 10 Years

Report: The International Energy Agency (IEA) Is Out of Touch; Latest Developments in Chile and Mexico Portend More

Nov. 21, 2017 (IEEFA) — New research by the Institute for Energy Economics and Financial Analysis sees India within a decade of peak thermal coal demand. In a report published today—“India’s Electricity Sector Transformation: Momentum Is Building; Peak Coal in Sight”—the institute projects a significant increase in renewable energy generation across India, a trend that will […]

November 21, 2017 Read More →

Would-Be New Mining Giant Is in Financial Peril

The Guardian: Profits of Adani Enterprises – the company in Adani Group’s complex structure that owns the proposed Carmichael coalmine – have collapsed almost 50% year-on-year, according to a half-yearly report released this week which does not mention the mine. The results further show the company is in financial distress, according to Tim Buckley from […]

November 17, 2017 Read More →