Report claims Adani's mine is unsustainable

A NEW report claims public money from the Northern Australia Infrastructure Fund would do little to shore up the unsound financial fundamentals of the Adani Carmichael mine proposal.

The Institute for Energy Economics and Financial Analysis commissioned report claims Adani Enterprise Ltd's equity market capitalisation had declined to a record low of US$1.1 billion.

The report claims Adani's net debt is more than US$2 billion.

IEEFA energy research director Tim Buckley said it was unsatisfactory to underwrite the $10 billion total project cost for Carmichael mine proposal.

"The economics of the Galilee Basin simply do not stack up," he said.

"The basic arithmetic is that the benchmark thermal coal export price is highly correlated with the A$/US$ rate.

"The coal price would need to sustain US$100 to make the project viable."

The current price is about $55.

The Institute for Energy Economics and Financial Analysis is a US-based pro-renewable energy advocacy group.

- APN NEWSDESK.


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