Antinuclear

Australian news, and some related international items

Carmichael mine in Queensland no longer a viable proposition

Adani losses prompt mining company to shift away from imported coal, Guardian,  Ben Smee , 7 May 18,  Results show Carmichael mine in Queensland no longer a viable proposition, analysts say 

Adani’s coal-fired power business has reported more heavy losses, prompting the Indian conglomerate to announce it would shift away from using expensive imported coal.

Analysts say the fourth-quarter financial results for Adani Power, a subsidiary of the Adani group, showed the proposed Carmichael mega-mine in Queensland was no longer a viable proposition.

Remarkably in the context of the Carmichael project, the billionaire Adani Groupboss, Gautam Adani, acknowledged in a statement that the cost of importing coal to India had contributed to Adani Power’s struggles.

“We expect to receive [domestic coal] for the Tiroda and Kawai plants in the near future, which will help reduce fuel costs and improve profitability of these projects,” he said.

“Under-recovery of fuel costs for Mundra project have impacted its financial viability, and we are in dialogue with key stakeholders for an early solution.”

When the Carmichael coal project was first proposed, Adani was pushing a “pit to plug” operational model under which it would mine coal to use at its own generators, making profits through efficiencies and cutting out middlemen.

The Mundra power plant, which operates on imported coal, was the planned destination for the spoils from the Carmichael project. After Mundra fell into financial trouble, Adani attempted unsuccessfully to sell the plant. It has not operated since February.

The Indian financial services company Edelweiss said Adani Power was “on thin ice” and doubted whether Mundra would reopen………https://www.theguardian.com/environment/2018/may/07/adani-coal-losses-prompt-mining-company-to-shift-from-imported-coal

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May 9, 2018 - Posted by | business, climate change - global warming, Queensland

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