Submission to Wilpinjong Extension Project inquiry

by Rod Campbell

The economic assessment of the Wilpinjong mine heavily overstates the value of the project. This is easily seen by comparing the estimate of the project’s net present value, AUD$735 million, with the total stockmarket value of the proponent, only $114 million.

The key flaw in the economic assessment is unrealistic production costs. The assessment assumes the current mine can produce coal for an average per tonne cost of AUD$26. At current exchange rates this would make it the cheapest mine to operate in the entire seaborne market.

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