Wood Mackenzie responds to Adani announcement
Published by Angharad Lock,
Digital Assistant Editor
Global Mining Review,
Following Adani announcing its Carmichael project go-ahead, Pralabh Bhargava, Senior Analyst, Metals and Mining, Wood Mackenzie comments:
“We expect Adani's Carmichael to be the first mine to be developed in the Galilee Basin with production from Carmichael's surface mine in 2023. Given the scale of the project, we have aligned Carmichael's start date with our coal market's export view that Galilee Basin coal will only be required by 2023. It also accounts for delays due to Native Title Law challenges and finance risk associated with the project.
Development of the Galilee Basin is contingent upon the construction of new rail, port, and power infrastructure. With federal government possibly stepping in to provide financing for the rail development, through the Northern Australian Infrastructure Fund (NAIF), it could provide much-needed support for the development of Galilee Basin infrastructure.
Carmichael’s surface operation would require a minimum real 2017 benchmark Newcastle thermal coal price of US$82/t to break even. However, the cost and break-even will come down with the start of the better quality underground operation and even further with start of other projects in the Galilee basin as higher volumes will help in reducing rail and port charges.”
Read the article online at: https://www.globalminingreview.com/finance-business/07062017/wood-mackenzie-responds-to-adani-announcement/
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