Adani's mega mine neither financially viable nor justified, says energy analyst
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Adani's mega coal mine in north Queensland is neither "financially viable nor strategically required" an energy commentator claims.
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".
Queensland Resources Council Chief Executive Ian Macfarlane did not respond to questions from the ABC about the mine's viability, but thanked both Labor and the Coalition for supporting the project.
"The Federal Government, the State Government and every level of court in Australia — including the High Court — is in agreement Adani's Carmichael mine should proceed," Mr Macfarlane said in a statement.
'Get those contractors moving again'
On Wednesday, Deputy Prime Minister Barnaby Joyce told the Queensland Media Club the Carmichael coal mine and its rail infrastructure were vital for the state's economy, and he appeared to downplay concerns about Adani's eligibility for public finance.
"You need for this state to get this thing built. You have to get the spark going again, you have to get those contractors moving again," he said.
"The contrarian point to that is you don't give them a loan and it never gets built?
"Then you say, oh, you know, quod erat demonstrandum. Hooray. I proved we lost."
Mr Joyce said the rail line would benefit steel makers and contractors.
"You need that money to flow," he said.
"If the loan facilitates this happening or expediting this process then I've got no problems with the loan."
Topics: rural, mining-rural, industry, mining-industry, coal, environment, environmental-impact, environmental-policy, charters-towers-4820, moranbah-4744, bowen-4805, townsville-4810, mackay-4740, cairns-4870, qld
