Adani defers Carmichael coal mine investment decision

INDIAN mining giant Adani have put the final decision regarding its sprawling Carmichael Coal Mine on hold, pausing while the Queensland Government quarrels over how to collect royalties.

Mr Watson said that when the company became aware a cabinet meeting of the Queensland government had not considered the matter, Adani directors chose to defer committing funds to the project.

Another report in The Guardian has said that the Infrastructure Australia, which produces a priority list of nationally significant investments, has said that the proposed rail line linking Adani's coalmine with the Abbot Point port has not been considered as a priority project. The company is engaged in coal trading, coal mining, oil and gas exploration, ports, multimodal logistics, power generation and transmission, and gas distribution.

The Queensland government was considering ways to extend royalty payments to promote jobs and investment in the state that has been hammered by the commodities slump over the past five years, Reuters said.

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

Earlier in the day, Deputy Premier Jackie Trad hosed down suggestions Adani would be offered lower royalties to get its multi-billion dollar Carmichael mine in the Galilee Basin off the ground.

Potentially, Adani could have paid as little as $2 million a year in royalties for the first seven years, before slowly increasing to the full amount.

The Queensland Cabinet on Monday deferred a decision on a royalties arrangement with Adani after Trad declared any "royalties holiday" for Adani would break Labor's election pledge of no taxpayer subsidies for the mine.

"The Queensland government made an election commitment that Adani must ensure its project is viable in an open, competitive marketplace".

Shadow Treasurer Scott Emerson accused the government of putting thousands of jobs at risk.

"That public money could be put on the line to protect private profit from the Adani coal mine that will help destroy the Reef and Australian tourism jobs is a truly gobsmacking and outrageous idea", she said in a statement on Tuesday.

Main Roads Minister Mark Bailey, a member of the Left, said there was a "positive and collegiate" discussion in cabinet about the issue but no decision was reached.

  • Zachary Reyes