Australian coal prices put GVK, Adani group projects at risk.

The Australian government has forecast no recovery in coking coal prices in the near term, prompting a leading think tank to warn against any public investments in Galilee coal basin where Indian majors GVK and Adani Group plan major mining projects.

Putting a question mark on the viability of GVK, Adani Group and, now, SBI's planned investments, the Australian government treasury in its mid-year economic and fiscal outlook statement on Monday revealed its assessment that the price of thermal or metallurgical (coking) coal - which is Australia's biggest export to India - will remain flat through to mid-2016 at around $63 per tonne.

This follows UK energy secretary Ed Davey saying last week that fossil fuel companies could become 'the sub-prime assets of the future'.


ET