Adani says Carmichael mine decision on track after royalty agreement
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.business Updated: May 30, 2017 14:36 IST
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.
“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.
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.
First Published: May 30, 2017 14:36 IST