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 (IEEFA.org): 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

Adani Group CFO says company not interested in India’s coal mine auctions

Reuters: India’s largest coal mining services provider and trader Adani Enterprises Ltd is not interested in participating in the country’s first ever coal mine auctions for the private sector, an executive said on Thursday. Indian Prime Minister Narendra Modi in June opened up coal mining without end-use restrictions and provided financial incentives to attract investment […]

August 7, 2020 Read More →

Korea’s Hanwha Securities to stop financing Adani’s coal projects in Australia

The Guardian: A second major Korean backer of Adani’s Australian coal operation has said it won’t provide any more financial support for the controversial miner, which faces potential debt difficulties related to its Abbot Point export terminal. Guardian Australia has seen a letter from Korean brokerage firm Hanwha Securities – sent to the climate group […]

August 3, 2020 Read More →

NSW’s bullish coal export plan defies the global market realities

Appropriate post-coronavirus energy investment will both lower power prices and support jobs

The NSW government’s new strategic statement on coal exploration and mining has been unveiled, just as COVID-19 accelerates the energy transition away from fossil fuels. The statement optimistically maintains that global demand for thermal coal will only drop by one-tenth by 2050. Furthermore, the government is expecting that Australian thermal coal exports will be protected […]

IEEFA Australia: Coal lobbyists claim commitment to Paris Agreement targets, five years after their members did

IEEFA Australia: Coal lobbyists claim commitment to Paris Agreement targets, five years after their members did

Lobbyists push “emissions-friendly automation” and super-expensive coal CCS as solutions

Coal lobbyists from the Minerals Council of Australia (MCA) have released their new Paris Agreement Alignment policy. This is their latest figleaf to reference climate science even as they continue to advocate for delay and obfuscation. In their support, the Queensland Resources Council’s (QRC) coal lobbyists continue to trumpet Queensland coal as the ‘cleanest’ in […]

June 22, 2020 Read More →

Another insurance company walks away from Adani’s Carmichael coal mine project in Australia

The Guardian: Another major insurer that was providing cover for the Adani Carmichael coalmine project in Queensland has said it will not be renewing policies with the coal project. Aspen Insurance is the fourth of Adani’s underwriters to walk away from the major mine and export rail project currently being constructed in the Galilee basin. […]

June 19, 2020 Read More →

IEEFA update: One of NSW’s major coal customers is going through transition pains

Australian thermal coal exports to South Korea were down 21% in the first quarter of 2020.

South Korea is one of Australia’s major coal export destinations which makes KEPCO – its state-controlled power generator – a key customer for Hunter Valley coal, and a player with its own NSW coal interests, as it owns the Bylong Coal proposal. KEPCO’s A$642m write off of Bylong in 2019 is a key illustration of […]

IEEFA Australia: Siemens’ stake in Adani coal mine not even economically sensible

IEEFA Australia: Siemens’ stake in Adani coal mine not even economically sensible

Doubtful it will ever pay off

People across the world have been shocked by the extent and ferocity of the bushfires that rage across Australia and the devastating loss of life, property, wildlife and forests.  While the fires have destroyed an area a fifth the size of Germany, many have made valuable contributions to easing the burden for those who have […]

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IEEFA Australia: Adani Group to receive up to $900m in early Christmas present from Queenslanders

Expected on the one-year anniversary of declared self-funding for Carmichael coal project

29 November 2019 (IEEFA Australia) – Queensland Treasury are expected to sign off on a massive early Christmas present worth up to $900m packaged as a seven-year royalty deferral – another term for a capital subsidy – for the Adani Group on 30 November 2019 (likely to be announced on 29 November), ironically on the […]

and November 28, 2019 Read More →

IEEFA update: The Adani juggernaut is expanding on all fronts, Australian coal needs not be one of them

Adani Group could show global leadership and walk away from its long stalled Carmichael mine

The Adani Group is today one of the most powerful business conglomerates in India, spanning six listed entities across a growing multitude of activities. The group is unusual in that it is entirely, sensibly, almost entirely focused on one country, India. Internationally, this conglomerate operates only two businesses of any note – one thermal coal mine […]

October 29, 2019 Read More →

IEEFA update: AXIS joins 28 global insurers exiting coal financing

Financial institutions increasingly responding to climate risk

Lloyd’s of London insurer AXIS Capital announced yesterday it is limiting its exposure to thermal coal underwriting and investment, joining over 100 and counting globally significant financial institutions with coal finance restrictions in place. IEEFA is tracking globally significant, public and private financial institutions in banking and insurance who have introduced formal coal restriction policies, […]

October 17, 2019 Read More →