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Adani set to have the last laugh as thermal coal prices reach decade high

Business

Bravus Mining, the rebadged operating company for Adani Australia, is cheering as thermal coal prices reach a decade high and make its Carmichael project in Queensland financially more attractive.

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The 10 million tonne-a-year thermal coal project has stirred a huge protest movement in recent years and at times looked financially unviable as thermal coal prices plunged to lows of around $US50 a tonne.

However, Bravus was today pointing to prices above $US122 a tonne for high-quality coal, “the highest prices seen for the commodity in a decade” as development of the mine moves closer to first coal in 2021.

Bravus said its parent company, Adani, had a unique view of the market and “we see there will be a need for both coal and renewables in the energy mix to meet growing energy demand in Asia as people there emerge from poverty.

“It is important to address the realities of climate change, and we are demonstrating on a daily basis that this can be done in a measured way that involves both renewables and high-quality thermal coal, while also improving the lives of people living in energy poverty, and ensuring our own nation is well-positioned to capitalise on opportunities in the process.

Bravus said prices for the lower quality coals were $US70, about double the price in August 2020 and India was emerging as a key buyer of the coal as Australia redirected its exports away from China because of the ongoing trade bans.

“For years now we have been talking about the growing demand in Asia for thermal coal in order to provide safe, affordable and reliable baseload power, as renewable generation also increases,” Bravus said.

“When it is operational, the Carmichael Project will provide high-quality Australian coal for baseload electricity generation that supports India’s advancement, social progress and energy security.

“With that national drive and ambition comes opportunities for countries like Australia to help India deliver new products, infrastructure, resources and improved living standards for its people, while also creating a growth catalyst for our own national economy.

“As the world’s number one international solar company and India’s largest private electricity generator, Bravus’ parent company, the Adani Group, has a unique view of the market and we see there will be a need for both coal and renewables in the energy mix to meet growing energy demand in Asia as people there emerge from poverty.

“As renewable technology improves there is no doubt that it will supply more energy, however this will take significant time as thermal power stations won’t be retired until they reach the end of their lives which is decades away. That is why we are committed to both coal and renewables.”

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