Adani's Carmichael Mine is unbankable says Queensland Treasury, reports SMH

 (Excerpts from Lisa Cox' Article of Sydney Morning Herald)

http://www.smh.com.au/business/mining-and-resources/adanis-carmichael-mine-is-unbankable-says-queensland-treasury-20150630-gi1l37.html

• "Documents released under Queensland's freedom-of-information laws show officials at the highest level of the Queensland Treasury held grave doubts about Indian mining company Adani's capacity to see through its Carmichael coal mine project in central Queensland."
•           the project was unviable  

·         former under treasurer Mark Gray and principal commercial analyst Jason Wishart, express fears about Adani's high level of debt and identify the mining giant as a "risk" because of its unclear corporate structure and use of offshore entities.

·         On November 11, Mr Wishart said the expansion would put Adani's financial position under "increased strain" while another Treasury briefing notes "the group is highly susceptible to cost shocks".

·         Mr Wishart wrote that Adani Enterprises Limited – the Bombay Stock Exchange-listed parent company for a network of related Adani entities – had total assets of $21.5 billion, but which were "heavily geared" with liabilities of $16.4 billion. "Continued expansion to meet power and mine ambitions will place this financial position under increased strain," he wrote.

·         ...then Under Treasurer Mark Gray that while there was not a funding "boycott" it was "fair to say that there is not a lot of market support for investing in Galilee thermal coal projects at present."

·         "That level of funding interest has been declining with the slide in the coal price over the last two years," he said.

·         He noted funding was also being impacted by a continued "poor outlook" for the commodity as well as pressure from green groups on banks for supporting such projects.

·         "These secret documents make clear that Treasury has serious concerns about Adani's financial ability to actually build these projects and that its demands for proper due diligence have continued to be ignored," Jeremy Tager, spokesman for the North Queensland Conservation Council said."

http://www.smh.com.au/business/mining-and-resources/adanis-carmichael-mine-is-unbankable-says-queensland-treasury-20150630-gi1l37.html

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