Antinuclear

Australian news, and some related international items

Not justified, not financially viable – Adani’s huge coal mine project

Adani’s mega mine neither financially viable nor justified, says energy analyst, ABC News,  By Casey Briggs, 8 Dec 16, Adani’s mega coal mine in north Queensland is neither “financially viable nor strategically required” an energy commentator claims.

coal CarmichaelMine2

The mining giant will begin construction on its $22 billion Carmichael coal mine in the Galilee basin in central Queensland next year.

This week, Adani announced the mine’s regional headquarters will be in Townsville, and the State Government is promoting an “ironclad” handshake deal with the company to source workers from regional Queensland.

Despite the announcements, energy analyst Tim Buckley from the anti-coal think tank The Institute for Energy Economics and Financial Analysis (IEEFA) said there is still doubt over whether the mine is even viable.

“All of my financial analysis over the last four years says the mine is neither financially viable nor strategically required or justified,” Mr Buckley said.

“Financial closure is going to be a major obstacle, I have absolutely no doubt.”

“As the company has admitted, they have not been talking to any financial institutions about this project”

Federal government should study India first

A number of Australian and international banks have reportedly ruled out financing the mine. Adani has also applied for public financing for a $1 billion rail link from the Commonwealth Government, but it’s unclear if the loan will be granted.

Mr Buckley said the Indian Government’s plans to reduce and potentially end coal imports threatens the justification for the project. “[The Australian Government should] go and study what’s happening in India … before they give a billion dollars in taxpayer subsidy to a foreign billionaire who made an investment decision at the height of the coal boom in 2011 and hasn’t progressed the project for six years,” said Mr Buckley.

At the Paris climate summit in November 2015 India’s prime minister Narendra Modi declared that in the 21st century “the world must turn to the sun to power the future”…….http://www.abc.net.au/news/2016-12-08/adani-mega-mine-neither-viable-nor-required-says-analyst/8100906

 

December 9, 2016 - Posted by | business, climate change - global warming, Queensland

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