first_imgKorea Electric writes off investment for planned Bylong Valley coal mine in Australia FacebookTwitterLinkedInEmailPrint分享Newcastle Herald:The South Korean energy company that spent a decade trying to start a coal mine in Bylong Valley has written off the project and nearly 700 million Australian dollars.KEPCO’s board marked down the value of its Bylong mining rights from $Aus642 million to zero in a report to the South Korean stock exchange in early January, despite the Australian arm of the company seeking a judicial review against the coal mine’s refusal in September.The South Korean state-owned company has also marked down the value of the 13,000 hectares of Bylong Valley land it owns between Denman and Mudgee by $45 million, after paying $115 million for properties since 2010, when it paid more than $400 million for the mining license.Analyst Tim Buckley, from the Institute for Energy Economics and Financial Analysis, said the write-off “doesn’t mean that KEPCO has walked away, but it clears the deck should they formally decide to walk.”Mr. Buckley said KEPCO documents showed the parent company made a net loss of $Aus1.158 billion in the nine months before September, when the NSW Independent Planning Commission rejected the Bylong coal mine proposal, in part because its greenhouse gas impacts would leave future generations paying the price for contemporary benefits. KEPCO’s total debts were more than their total equity value, which is “not a great position to go investing in yet more stranded assets,” Mr. Buckley said. “That is particularly at a time when the South Korean Government is re-prioritising its energy policy away from coal towards renewables and liquefied natural gas on rising pollution pressures,” he said.KEPCO planned to run an open cut and underground mine complex for 25 years and mine up to 6.5 million tonnes of coal per year for use in the domestic Korean energy market.[Joanne McCarthy]More: KEPCO says Bylong mine proposal has no value after refusal in Septemberlast_img

Korea Electric writes off investment for planned Bylong Valley coal mine in Australia

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