Adani reaches royalties agreement with Queensland government

It had last week deferred an investment decision on the project scheduled for May 29 after delays in reaching an agreement on royalty terms.

“That’s more money for our state to spend on infrastructure, renewables, health and education”.

The government’s approach will apply to future developments projects in the Galilee and Surat Basins and the North West Minerals Province.

The Carmichael coal mine and port-cum-railhead project are said to be one of the world’s largest and has already received the green light from the federal and Queensland governments.

Senator Canavan has said the mine will generate thousands of jobs in regional Queensland where unemployment tops 10 per cent. Adani’s coal also has the potential to displace dirtier coal in India as well as promote the spread of electricity to the millions now without it, he says. Top anti-mining group Environmental Justice Australia interpreted this as meaning that Queensland has blocked any NAIF loan to Adani under the current laws.

Prospects for the controversial Adani coal mine have dimmed further after the Queensland government said it wanted no role in any federal loan to support the project.

Adani Enterprises will have to pay entire royalties on the coal it plans to mine from the Carmichael mine project in Queenslad, Australia, the prime minister of the western state, Annastacia Palaszczuk, clarified on Saturday.

The agreement with Queensland government “meets Adani’s expectations and requirements”, the company said in a statement, without providing details of the accord.

“It should be noted that the NAIF has not lent any funding since it was announced two years ago, and I would encourage the Turnbull Government to actually start using the available funds”.

“If Queensland is not a part of any agreement for NAIF funding, then, in our view, Adani’s railway line can not receive NAIF concessional loans under the current legal framework”. “We promised that Queensland taxpayer funds would not subsidise the Carmichael rail line and we are keeping that promise”, he said in a statement. “They need to come clean about what their position is on Adani”.

“Investors accessing the new resources framework will be required to provide jobs, common-user infrastructure and have a positive impact on the state’s finances”, Pitt said.

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