Indian mining giant Adani says a proposed Queensland mega-mine will help fuel a rapidly expanding overseas coal market as a new report labels it financially unviable.
The $16.5 billion Carmichael mine, planned for the Galilee Basin, was last month the subject of a legal challenge by conservationists in the Land Court of Queensland.
The Institute for Energy Economics and Financial Analysis (IEEFA) has released a new report in which author Tim Buckley dissects a corporate restructure by Adani Enterprises and its impact on the Carmichael proposals.
The changes include a demerger of Adani Ports and Adani Power which would improve the transparency and free float of three of the listed entities, Mr Buckley said.
But his report also identified negative impacts for the Galilee projects.
"IEEFA views the Carmichael proposal as commercially unviable and no longer consistent with the financial interests of the Adani Group," the report said.
"This scheme further marginalises the Carmichael proposal."
A spokesman for Adani said the restructure would merge the domestic (Indian) mining business of Adani Group with Adani Enterprises, enhancing its focus on the resources business.
"In effect, the restructure will make Adani Enterprises a large resource company with a focus on its mining operations in multiple markets," the spokesman said.
The spokesman said the move would not disadvantage Australian operations, as Adani Group would remain the owner of the bulk of the shares in the entities.
"There is a continuity of focus on the important role Carmichael will play in delivering energy security in India from the proponents," he said.
Adani's spokesman also rejected as flawed Mr Buckley's estimate that a further $A3.6 billion ($US2.82 billion) still had to be found for stage one of the mine.
He said Adani is standing by a commitment to deliver $A22 billion ($US17.24 billion) in taxes and royalties to Queensland over 30 years and create 10,000 direct and indirect jobs.
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