May 30, 2017

Adani in royalties agreement

Adani in royalties agreement Adani's bulk coal port facility at Abbot Point.

Adani Australia says it today reached agreement with the Queensland Government on royalty payments for its $16.5 billion Carmichael coal project.

In a statement, the company said the agreement met Adani’s requirements and was a benchmark decision to take the project forward.

“I thank the Premier, Annastacia Palaszczuk, and the elected members of the State for their continued support to make this happen,” Adani chairman
Gautam Adani said.

“I also wish to thank the Prime Minister, Malcolm Turnbull, and Opposition Leader, Bill Shorten, for their support for the changes to the Native Title Bill.”

Adani said the royalties arrangement meant the project was back on track to generate 10,000 direct and indirect jobs in regional Queensland.

The Adani parent company board will consider the Final Investment Decision at the next board meeting.

The project involves mine production of 25 million tonnes per annum in the first phase and construction of a 388km standard
gauge common-user rail line from the Galilee Basin site to Abbot Point, near Bowen.

Peak mine production in later phases will rise to 60mtpa.

To accommodate that later stage mine production, Adani also plans to expand the port capacity from 50mtpa to 120mtpa of its owned and operated bulk coal port facility at Abbot Point.

Premier Annastacia Palaszczuk said the agreement with Adani for its Carmichael coal project meant a boost for regional jobs and the Queensland economy while ensuring strict environmental protections- such as not dumping dredge spoil in the Great Barrier Reef Marine Park and Caley Valley Wetlands remained in place.

“The agreement with Adani adheres to the principles in the resources framework we outlined at the weekend,” Ms Palaszczuk said.

“Every cent of royalties will be paid and any deferred royalties will be paid with interest.

“This is about delivering jobs and getting those royalties so we can continue to invest in frontline services, infrastructure and renewables.”