Adani has to pay royalties in full for coal mine – Australia state premier
Sat May 27 2017
Julie Young (526 articles)

Adani has to pay royalties in full for coal mine – Australia state premier

 SYDNEY Adani Enterprises (ADEL.NS) 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.

 

 

 

Julie Young

Julie Young

Julie Young is a Senior Market Reporter and Analyst. She has been covering stock markets for many years.

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