December 29, 2017 Read More →

The Numbers Don’t Stack Up: W&J’s Rights on the Chopping Block for Adani’s ‘Non Viable’ Project

New Matilda:

Even with financial breaks from government, the evidence – drawing from the Institute for Energy Economics and Financial Analysis (IEEFA) and other recent figures – demonstrates the Adani mine-rail project is highly unlikely to be economically viable. On this basis, any public money lent to the project, whether through the NAIF, or through a deferral of royalties, is unlikely to be recovered.

Movements in coal prices and exchange rates since 2015, alongside India’s shift away from coal – the primary intended market for Adani’s coal exports – all point to the (non)viability of Adani Mining Pty Ltd’s proposed project.

Even if the decline in coal prices that is anticipated in futures markets fails to occur, and Adani were to pursue its scaled down ‘Stage 1’ proposal – an unlikely best-case scenario for the industrial giant – it is still unlikely to deliver returns sufficient to allow repayment to lenders and investors.

These economic conditions facing Adani Mining, alongside W&J’s rejection of a land use agreement, render its Carmichael mine and rail project unviable.

The Numbers Don’t Stack Up: W&J’s Rights on the Chopping Block for Adani’s ‘Non Viable’ Project

Posted in: IEEFA In the News

Comments are closed.