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 Group boss, 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.
For the rest of this article: https://www.theguardian.com/environment/2018/may/07/adani-coal-losses-prompt-mining-company-to-shift-from-imported-coal