• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Solving The Space Problem For America’s Solar Industry
  • 7 days Investment in renewables tanking
  • 5 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
Conoco To Box Suncor Out Of Oil Sands Deal

Conoco To Box Suncor Out Of Oil Sands Deal

ConocoPhillips will snap up TotalEnergies'…

Adani and GVK Make $21 Billion Coal Bet as All Others Scale Down Operations

Coal is experiencing its worst slump in seven years. Yet whilst most coal mining companies are closing projects and cutting back on operations as costs continue to rise, such as Glencore Xstrata, who is cancelling projects and firing employees to cope with escalating production costs and slumping prices, GVK Group and Adani Enterprises are moving ahead with their $21 billion investments in Australia’s Galilee Basin.

The reason?

The Australian bureau has recently released a report that predicts Asian demand for coal imports to increase to 824 million tonnes a year by 2018, up from 665 million tonnes last year. China will import an extra 22% from Australia, and India an extra 83%.

GVK and Adani expect that their new coal projects will be complete in time to take full advantage of this boost in demand.

Related article: Shale Boom Sees Cheap US Coal Head to Europe and Asia

GVK, intends to have all financing in place to begin constructing it Alpha mine in the Galilee region of Queensland, with the project ready to export coal by 2017.

Adani will begin construction on the Carmichael mine, part of its $6.8 billion project in the region with coal production expected to begin by 2016.

Adani and GVK are just two of the companies planning to invest more than $32 billion on developing the Galilee basin, which covers 247,000 square miles, and contains an estimated 14 billion tonnes of coal.

ADVERTISEMENT

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News