Adani Must Pay Royalties on Carmichael Mine, Queensland Says
India’s Adani Group will be required to pay full royalties on its $16.5 billion Carmichael coal project in Australia’s Queensland, according to the state’s premier.
The Carmichael mine “will pay every cent of royalties in full” under a new policy unanimously agreed to by the state’s cabinet for the development of the Galilee and Surat Basins and the North West Minerals Province, Premier Annastacia Palaszczuk said in a statement Friday.
“There will be no royalty holiday for the Adani Carmichael mine,” Palaszczuk said.
Adani Australia said in a statement it will consider the cabinet decision Friday and remains committed to the state. Adani was due to make a final investment decision on the project May 29, but said earlier this week that it will delay the move, citing uncertainty over royalty payments. Federal Resources Minister Matthew Canavan said the Indian company could walk away from the development if the issue wasn’t resolved.
The new Queensland policy allows royalty payments to be deferred, said a person with knowledge of the matter, who asked not to be identified as the details haven’t been made public. The length of any deferral will be announced at a later date, the person said.
The Australian Broadcasting Corp., which reported the agreement earlier, said royalties could be deferred for the first few years, which Adani would then have to pay in full and with interest.
The Carmichael project, which Adani says could fuel power generation for 100 million Indians and create 10,000 jobs in Queensland, has been delayed several times since first being proposed in 2010 by protests and court claims from green groups concerned about its environmental impact.
Adani Group’s main listed unit, Adani Enterprises Ltd., closed 0.3 percent lower at 115.95 rupees in Mumbai.
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