Adani says Carmichael mine decision on track after royalty agreement - Hindustan Times
close_game
close_game

Adani says Carmichael mine decision on track after royalty agreement

Reuters, Sydney | ByReuters
May 30, 2017 02:36 PM IST

The Adani board last week 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 with the Queensland state government.

Adani Enterprises will move ahead with a final financing decision for its Carmichael coal mine project in Australia after an end to negotiations on how to pay government royalties, it said on Tuesday.

Carmichael coal mine project in Australia .(HT photo)
Carmichael coal mine project in Australia .(HT photo)

“The Adani parent company board will consider the final investment decision at the next board meeting.” the company said in a statement. No date has been set for the next meeting of the board though it typically meets once a month.

Hindustan Times - your fastest source for breaking news! Read now.

The Adani board last week 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 with the Queensland state government.

Adani did not disclose the terms of the royalties.

The company is still counting on about $1 billion in loans from Australia’s federal government under the Northern Australia Infrastructure Facility to pay for rail transport work.

Adani is also awaiting passage of Australia’s Native Title Amendment by its parliament, expected sometime next month.

The bill is designed to make it easier for companies like Adani to sign land rights agreements with indigenous land owners.

The Carmichael project is located in the remote Galilee Basin, a 247,000 square-kilometre (95,000 square mile) expanse in the central outback that some believe has the potential to become Australia’s largest coal-producing region.

Adani has battled environment groups trying to block what would be Australia’s biggest coal mine, arguing it will contribute to global warming and damage the Great Barrier Reef.

Adani says the project, at an initial cost of $4 billion, would pay billions of dollars in royalties and taxes, create jobs for the state and export coal to India help bring electricity to rural regions.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Tuesday, March 19, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On