April 11, 2017 Read More →

Little Demand Seen for More Australian Coal

Australia Financial Review:

Mr Turnbull arrives in India at a pivotal stage in Adani’s marathon effort to have the thermal coal project approved, and at this stage of the game, few can do more to help Carmichael than Australia’s 29th prime minister.

A loan through the government’s $5 billion Northern Australia Infrastructure Fund (NAIF) would not only reduce the scale of Adani’s financing challenge, but potentially provide other prospective lenders with the extra confidence that comes with state money.

Legislating to reverse a shock Federal Court ruling that effectively requires all members of an Indigenous group to agree for an Indigenous Land Use Agreement (ILUA) to be valid, would also do a lot to boost Adani’s cause.

But the quality of coal available in the Galilee Basin depends on what you compare it to.

Tim Buckley, once the head of equity research at Citi and now the director of energy finance studies at the Institute of Energy Economics and Financial Analysis thinks the freight cost rationale behind Adani’s push into Australia has been undermined by the rapidly declining cost of renewable energy in India.

He also points out that Adani’s Carmichael plan is at odds with Indian energy minister Piyush Goyal’s ambitious plan for India to cease coal imports and become self-sufficient in coal by the end of this decade.

“Piyush Goyal has built a strong track record of delivery across the energy portfolio he is driving,” said Mr Buckley on Friday.

“Interesting to see Indian coal imports fell 22 per cent in January 2017 year on year … this is the now the second financial year in a row of decline and the rate is accelerating.”

Eyes on Adani’s Carmichael mine as Malcolm Turnbull meets with Narendra Modi

($) Australia Hints at Financial Support for Controversial Coal Mine

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