Inform

Adani gives the go-ahead to the Carmichael thermal coal project

This report is currently unavailable

For details on how your data is used and stored, see our Privacy Notice.
 

- FAQs about online orders
- Find out more about subscriptions

*Please note that this report only includes an Excel data file if this is indicated in "What's included" below

Adani gave the "green light" to develop the Carmichael mine and rail projects in Australia's Galilee Basin. The company called it a historic day for Adani and termed it the largest single investment decision by an Indian corporation in Australia, with pre-construction works expected to begin in September 2017. The seaborne thermal coal market needs new supply beyond 2020. Our asset-by-asset modelling indicates that Carmichael will be the first greenfield thermal coal project to commission in the Galilee Basin. But under our current price assumptions, Carmichael does not generate a positive NPV. We expect Carmichael to start in 2023, and will require a US$82/t FOB Newcastle benchmark price to deliver a 15% IRR. Some further cost reduction may be possible, improving its economics, however financing remains the single biggest hurdle to project delivery. 

Table of contents

  • Adani gives the go-ahead to the Carmichael thermal coal project

Tables and charts

This report includes the following images and tables:

  • Australia's coal capital spend versus export
  • Future mine and project thermal export production growth for Australia (Mt)

What's included

This report contains:

  • Document

    Adani gives the go-ahead to the Carmichael thermal coal project

    PDF 1012.36 KB