Ignoring Market Glut, Australia Weighs $1 Billion Government Loan to Finance World’s Biggest Coal Mine
The Wall Street Journal:
Australia’s government has indicated strong backing for a loan of almost 1 billion Australian dollars for Indian conglomerate Adani Group to build the world’s largest coal mine, despite projections of a global glut of the commodity and environmental concerns.
The pair also discussed a possible loan from the A$5 billion Northern Australia Infrastructure Fund to help build a rail line to the mine. The fund is independently administered but overseen by Resources Minister Matt Canavan, who is from Queensland and a member of Mr. Joyce’s party who strongly backs building the mine.
Despite projections of a global glut of the commodity and a prolonged downturn in prices, Adani has been pushing ahead with plans to build the mine that would produce thermal coal to generate electricity and operate for six decades. The company plans to produce as much as 60 million metric tons of thermal coal a year from six open-cut pits and five underground mines.