Wednesday 28th Jun, 2017

Adani royalties deal signed

Coal. Photo: Shutterstock
Photo: Shutterstock

Indian energy giant Adani has reportedly struck a royalties agreement with the Queensland Government, and is set to go ahead with its $16.5 billion Carmichael coal mine in the Galiliee Basin.

The Labor Government in Queensland has been struggling to save face over the last fortnight, after a reported split between Premier Annastacia Palaszczuk and the party’s Left faction, let by deputy premier Jackie Trad, over the scale of a royalty deal between the state and the miner.

The Government has said it cannot expose the full details of the agreement, as it is commercial in nature.

But Palaszczuk said any deferred payments would be payed in full, plus interest.

“The agreement with Adani adheres to the principles in the resources framework we outlined this weekend,” Palaszczuk said.

“Every cent of royalties will be paid and any deferred royalties will be paid with interest.

“This is about delivering jobs and getting these royalties so we can continue to invest in frontline services, infrastructure and renewables.”

Controversial reports last week had the State Government offering to allow Adani to delay royalties to the latter part of the mine’s life, for an effective relief of as much as $320 million in delayed payments. Trad has been vocal against the state giving any money to the miner.

Trad’s opposition to the project has forced Queensland Treasurer Curtis Pitt to clarify the role the state will play in the mine.

Despite the deputy premier’s assertions that the state would not help finance the mine, Pitt explained last week that he would in fact act as a ‘middle man’ if the project was to get funding via the Commonwealth’s Northern Australia Infrastructure Fund (NAIF