Coal mining: the economics?

This data-file aims to approximate the economics of a new coal mine, using simple rules of thumb and data from past projects, capex (in $/Tpa) and opex (in $/ton).

Coal is ridiculously cheap, providing thermal energy at around 1c/kWh while also generating a 10% IRR on the new investment. 1 MWH pa of new energy can be produced for an up-front investment of around $10.

A high CO2 intensity of 0.55kg/kWh is also quantified in the data-file, including combustion emissions, methane leaks, diesel fuel and electricity usage at the mine.

Please download the data-file to stress test the economics and sensitivity to coal prices in $/ton.

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