Indian mining firm Adani Group and the Queensland Government have reached an agreement over royalties for the proposed $16.5bn Carmichael Coal project in Australia.
The company said it will make a final investment decision on the coal mine project in its next board meeting.
Queensland Premier Annastacia Palaszczuk said the coal mine project will create several regional jobs in the Galilee and Surat Basins and the North West Minerals Province besides boosting the state’s economy.
The agreement will also ensure that dredge spoil will not be dumped in the Great Barrier Reef Marine Park and Caley Valley Wetlands among other strict environmental protections to be enforced on Adani.
Palaszczuk said: “The agreement with Adani adheres to the principles in the resources framework we outlined at the weekend.
“Every cent of royalties will be paid and any deferred royalties will be paid with interest.
“This is about delivering jobs and getting those royalties so we can continue to invest in frontline services, infrastructure and renewables.”
In late May, the Queensland Government declared that no royalty holiday would be granted to Adani and that the latter had to pay every dollar of state royalties for the proposed coal mine project.
Following the announcement, there was more uncertainty over the coal mine project. Based on it, Adani delayed its final investment decision as it wanted to wait on the final stance adopted by the Queensland Government.
The Carmichael Coal project which is expected to have an operating life of nearly 60 years is likely to create 10,000 direct and indirect jobs.
Adani expects the coal project to generate about $22bn in mining taxes and royalties in the first half of the project life.
Image: Adani’s Carmichael Coal project is back on track with the agreement. Photo: courtesy of dan/Freedigitalphotos.net.