Adani defers Australian coal project investment decision

MELBOURNE:Indian energy giant Adani today deferred a final investment decision on its much-delayed $21.7 billion Carmichael coal mine in Australia after the Queensland government failed to decide on royalties amounting to millions of dollars for the controversy-hit project.

Melbourne, May 22

Indian energy giant Adani today deferred a final investment decision on its much-delayed $21.7 billion Carmichael coal mine in Australia after the Queensland government failed to decide on royalties amounting to millions of dollars for the controversy-hit project.

Adani wanted the Queensland government to delay the start of royalty obligations on the coal mine it hopes to build in Queensland’s Galilee Basin, media reports said.

A final investment decision on Carmichael was expected from Adani this month. “Adani is advised that the Queensland Cabinet did not consider any submission or make a decision on royalties for the Adani project today,” Adani’s spokesman in Australia said. The Queensland Cabinet met today and did not decide on “royalties holiday” deal for Adani’s project.

State Premier Annastacia Palaszczuk said there was no formal submission to the Cabinet today, but Adani would pay what it owed.

“It hasn’t come before the Cabinet at the moment but of course we support jobs right across the state, and I think as a government we can look very clearly at trying to open up the Galilee, the Surat and also the north-west province,” she said. “And at the end of the day it’s all about jobs and that’s what Queenslanders want,” she said. Roads Minister Mark Bailey said there was a “positive and collegiate” discussion and “there was some discussion [about mining royalties], but there’s been no decision reached”.

“Our position has been very clear, since the days of opposition, we said we would not subsidise that project, that is still our position, we’ve been consistent year in, year out,” Bailey said.

The decision by Adani appears to be a bid to increase pressure on the state government to follow through on a “secret deal” to reduce the firm’s royalties in the first seven years of the mine’s operation, Sky News said. Under the deal, Adani would reportedly pay just $2 million in royalties annually, which could end up costing taxpayers $320 million in lost royalties. — PTI