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  Business   Companies  27 May 2017  Adani has to pay royalties in full for coal mine: Aus

Adani has to pay royalties in full for coal mine: Aus

Published : May 27, 2017, 3:00 pm IST
Updated : May 27, 2017, 3:00 pm IST

Directive puts an end to speculation that Indian company would be offered concessions.

Chairman and founder of Adani group Gautam Adani.
 Chairman and founder of Adani group Gautam Adani.

Adani Enterprises will get no exemption or discounted rates on royalties it has to pay to develop its Carmichael coal mine project in Australia, Queensland state Premier Annastacia Palaszczuk said on Saturday.

Ministers from the centre-left state government made the decision on Friday, putting an end to speculation that the Indian company would be offered concessions on royalties during the early years of coal production.

“Under this new policy, the Adani Carmichael mine will pay every cent of royalties in full,” Palaszczuk said in a statement on Saturday.

“There will be no royalty holiday for the Adani Carmichael mine.”

Adani said this week its board had deferred a final investment decision that had been expected by the end of May because the government had yet to sign off on a royalty regime.

Adani could not be immediately reached for comment on the Queensland government’s announcement.

Deputy Premier Jackie Trad said Adani would be allowed to defer payment of royalties provided interest was paid and a security of payment was in place.

The state government ruled out the use of public money to subsidise the controversial project or any directly associated infrastructure.

Adani has battled green groups over the past six years looking to block what would be Australia's biggest coal mine. Opponents have argued the coal exports would stoke global warming and that the project would require a port expansion that could damage the Great Barrier Reef.

The port expansion is no longer needed as the company has shrunk the first phase of the mine to 25 million tonnes from 40 million tonnes a year, as it looks to make the mine and rail project more affordable at around $4 billion, instead of more than $10 billion.

Tags: adani, gautam adani, adani group, adani coal mine project, adani queensland project, adani in australia, carmichael coal mine project in australia
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