The risk of the controversial Adani Carmichael coalmine becoming a stranded asset has increased in the last 12 months, according to a new report. The Institute for Energy Economics and Financial Analysis (IEEFA), says the Carmichael project is likely to be “cash flow negative” for the majority its operating life, even with concessional loans. The IEEFA’s new report, Adani’s Remote Prospects, warns Adani Enterprises is not in a strong financial position.
It has thrown into doubt the wisdom of lending the project $1bn worth of taxpayers’ dollar through the Northern Australia Infrastructure Facility (NAIF).
It comes a week after John Hewson, a former Liberal party leader, warned the Carmichael coalmine was already a “stranded asset” and the last thing the Turnbull government should be doing is lending Adani $1bn.