Galilee Coal Basin: Carmichael - A stranded asset?
Download Full Report
Key Findings
The University College of London published a report in January 2015 saying that 95% of Australian coal reserves need to stay in the ground for the world to have a 50% chance of staying within 2 degrees C. Developing the Galilee Basin flies in the face of this logic.
Eleven major global banks key to most global coal mining investments have moved away from providing finance for the Galilee project proposals, particularly as it relates to building a new coal export facility adjacent to the Great Barrier Reef (GBR).
Executive Summary
In November 2013 IEEFA released a major review of the Adani Group’s proposed coal mine and associated rail and port infrastructure project in Central Queensland, Australia. The report, titled “The Adani Group: Remote Prospects: A financial analysis of Adani’s coal gamble in Australia’s Galilee Basin”i is still largely current. Many of the key financial and operational risks identified in the report remain. We highlighted the high probability of further delays as the financial markets become increasingly concerned about the lack of commercial viability, particularly relating to a move by the seaborne thermal coal market into structural decline. A year and a half on, the Carmichael project remains far from financial close and first commercial coal by 2018 at the earliest.
This note updates a few of the key aspects of the report to incorporate new developments.
Please view full report PDF for references and sources.
Press release: Galilee Coal Basin: Carmichael – A Stranded Asset?
