PERTH (miningweekly.com) – Indian major Adani is reportedly in talks with the Queensland government over a “royalty holiday” for its $16.5-billion Carmichael coal project.
Local media reports state that the proposed agreement will see Adani pay just A$2-million a year in royalties once the project starts operating, with the royalty rate increasing after several years.
The ABC speculated that the state government could lose up to A$320-million in royalties.
However, Adani on Friday told Mining Weekly Online that the company would pay “every cent” of its full state royalties bill for the Carmichael mine.
“Queensland governments of all political persuasions have used royalty agreements to enable such projects in Queensland, and Adani welcomes this approach,” a company spokesperson said.
“The Carmichael project will pay billions of dollars in royalties and corporate taxes but, importantly, will also generate 10 000 direct and indirect jobs in regional Queensland.”
Adani has previously promised that no foreign workers would be employed at the Carmichael project, with all workers to be sourced from local communities.
The proposed Carmichael project will comprise an opencut and underground mine, running for a period of 90 years and producing an average 60-million tonnes a year of thermal coal.
The Carmichael coal, railway and port project includes building Australia’s largest thermal coal mine, linked by a new 388 km standard gauge rail line to a new terminal at Abbot Point port near Bowen.