Carmichael Coal Project

IEEFA Research

IEEFA Australia: Australian taxpayers funding subsidies worth billions for Adani’s Carmichael thermal coal mine

Carmichael mine unbankable and unviable without subsidies

29 August 2019 (IEEFA Australia): After yet another three month extension, there is now just one month to go until Adani and Queensland Treasury sign off on a massive 900 million dollar 7-year low interest royalty capital subsidy for the Indian billionaire Adani Group – ensuring no royalty return from Carmichael into the Queensland community […]

IEEFA Australia: Contracting with Adani Australia entails counterparty risks

IEEFA Australia: Contracting with Adani Australia entails counterparty risks

Buyer beware

16 August 2019 (IEEFA Australia): Contractors, employees and debtors seeking work with Adani Mining are taking a financial risk with reports of previous contractors being burnt and the listed Indian parent company – Adani Enterprises Ltd – still lacking the financial capacity to deliver on the project, concludes a new briefing note out today. Written […]

IEEFA Australia: Time to differentiate – thermal coal delivers royalty crumbs compared to Queensland’s coking coal

IEEFA Australia: Time to differentiate – thermal coal delivers royalty crumbs compared to Queensland’s coking coal

Coking coal generates 87% of all coal royalties

3 June 2019 (AUSTRALIA): Thermal coal used for electricity provides only 13% of royalties to Queensland’s budget compared to coking coal used for steel manufacturing – which provides 87% in royalties, a new IEEFA report finds. The report, Conflating Queensland’s Coking and Thermal Coal Industries: Thermal coal adds little to Queensland’s state budget finds that […]

IEEFA Report: Proposed Coal-Fired Project for Bangladesh Is a High-Priced Scheme Meant to Prop Up Adani Power

IEEFA Report: Proposed Coal-Fired Project for Bangladesh Is a High-Priced Scheme Meant to Prop Up Adani Power

Godda Plan, Contrary to Its Poverty-Alleviation Advertising, Would Cost Customers Dearly

April 10, 2018 ( Adani’s proposed Godda Power project would prove financially unviable and a poor strategic fit for Bangladesh, concludes a report published today by the Institute for Energy Economics and Financial Analysis (IEEFA). The IEEFA study—“Adani Godda Power Project: Too Expensive, Too Late, and Too Risky for Bangladesh”—finds also that the project is […]

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 […]

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 […]

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 →

More News and Commentary

IEEFA Australia: Captive insurers threaten an orderly coal exit

As insurers retreat, the coal industry is turning to self-insurance

The good news is that coal is rapidly becoming uninsurable. Coal has been one of the largest contributors to climate change in history, and COP26 recently identified its elimination from energy sources as a prerequisite to meet the Paris Agreement’s 1.5℃ warming target. European insurers like AXA, SCOR and Zurich have led the way in […]

BNY Mellon to cut ties with Adani’s Carmichael coal mine in Australia

Bloomberg Green: Bank of New York Mellon Corp. will sever ties with billionaire Gautam Adani’s contentious Carmichael thermal coal mine in Australia, the latest global financial institution to distance itself from the project. “BNY Mellon has decided to resign from all legacy transactions with Adani in Australia and will not pursue additional transactions,” the U.S. […]

November 8, 2021 Read More →

Adani finally strikes coal at Carmichael, “epitome of a stranded asset”

Renew Economy:  It’s official. After a decade of delays, protests and acrimonious debate, followed by two years of expensive construction work, Indian conglomerate Adani has finally got its hands on some actual Queensland coal. “It is wonderful that we have now struck coal,” David Boshoff, chief executive of Adani’s Australian mining operations, said on Thursday. […]

June 25, 2021 Read More →

Carmichael plans India plastics plant supplied by Australian coal

The Guardian: The owners of the controversial Carmichael mine in Queensland want to build a US$4bn plant in India that would use Australian coal to make plastic. Adani Enterprises, which owns the Carmichael coalmine, said in submissions to Indian authorities the plant will use 3.1m tonnes of coal a year at the plant to make […]

June 17, 2021 Read More →

State Bank of India balancing between BlackRock, coal demand

Bloomberg($): India’s biggest bank is caught between investors like Larry Fink and Narendra Modi. State Bank of India needs to finance coal projects to meet the Indian leader’s push to electrify more homes, yet it wants to back renewable projects to appease global money managers including Fink’s BlackRock Inc., Storebrand ASA and Amundi SA. For […]

June 3, 2021 Read More →

Lloyd’s insurer Tokio Marine Kiln to back out of Adani’s planned Carmichael coal mine

Insurance Business Australia: The top 10 largest Lloyd’s of London insurers have ruled out underwriting the controversial Adani Carmichael coal mine, with Tokio Marine Kiln the latest insurer to announce it would drop “any future underwriting” of the project. Early this month, major Lloyd’s of London syndicate and London-based (re)insurer MS Amlin ruled out insurance […]

April 16, 2021 Read More →

Allianz unit Pimco to stop investing in Adani Ports coal export project in Australia

Bloomberg: Pacific Investment Management Co., which is seeking to decarbonize its investment portfolio, has stopped participating in the bond offerings of Adani Ports & Special Economic Zone Ltd. because of its links to a controversial coal project Australia, according to a person familiar. Pimco, which is owned by Germany’s Allianz SE, did not participate in […]

March 23, 2021 Read More →

Lloyd’s of London to stop issuing new insurance for coal projects, oil sands and Arctic energy exploration

Reuters: Lloyd’s of London is scaling back its exposure to coal and oil sands, the commercial insurance market said in its first sustainability report on Wednesday, in a reversal of its traditional hands-off approach to climate change strategy. Lloyd’s acts as regulator for around 100 syndicate members, and leaves decisions on underwriting and investment strategy […]

December 17, 2020 Read More →

Leading green bond firm threatens State Bank of India over support for Australian coal mine

Reuters: Amundi said it has warned the State Bank of India it will evict one of the lender’s green bonds from a flagship fund if it helps finance a coal mine in Australia that has met fierce opposition from environmental groups. Amundi, which holds the bond in its Amundi Planet Emerging Green One fund, said […]

November 30, 2020 Read More →
IEEFA: Adani’s Godda power project ‘left behind’ by changing energy policy in India and Bangladesh

IEEFA: Adani’s Godda power project ‘left behind’ by changing energy policy in India and Bangladesh

Plans for the new coal-fired power station can be reconfigured to support India’s economic recovery

The Adani Group’s recent acquisition of a coal block in Jharkhand has further highlighted how misaligned the Godda coal power project is with Indian energy strategy. Furthermore, new developments in Bangladesh – where Godda power is intended to be exported – mean the project is also looking increasingly out-of-step with Bangladesh’s energy policy. In our […]

November 25, 2020 Read More →