Queensland Government Offers Adani Mining Group A 'Royalties Holiday' That Could Cost State $320 Million

ABC News - Mark Willacy

The Queensland Government is offering Indian mining company Adani a "royalties holiday". (AAP)

The Queensland Government is offering Indian mining company Adani a "royalties holiday" worth hundreds of millions of dollars for its massive Carmichael coal mine in the state's north.

The ABC understands the proposed agreement would see Adani pay just $2 million a year in royalties once the $21 billion project starts operating.
The royalty rate will then increase after several years.
Sources have told the ABC that under the proposed agreement, the state would lose out on a total of $320 million in royalties.
Premier Annastacia Palaszczuk and Treasurer Curtis Pitt have been leading negotiations with Adani over the proposed royalties holiday.
Ms Palaszczuk would not confirm or deny the royalty agreement, but emphasised the importance of the Carmichael mine for the state's economy.
"What we know about this project is that it is vital for regional jobs," she said.

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Planning Australia's biggest mine

Step through the key events in the planning of Australia's biggest mining project, the Carmichael coal mine in remote central Queensland.

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It is understood Adani was seeking a total royalty holiday from the start of production that would have seen the company pay nothing, but this was rejected.
Senior Labor figures are concerned about the proposed deal, which could be signed as early as this week.
In the last election campaign, Queensland Labor promised no taxpayer funds would go towards the rail line linking the Carmichael mine to the port of Abbot Point.
Ms Palaszczuk, then the Opposition leader, slammed the Campbell Newman government for offering Adani a subsidy, accusing the LNP of "throwing a bucket of taxpayers' cash" at the company.
The Carmichael project is expected to produce 25 million tonnes of coal a year in its first phase.
Analysis by the progressive think-tank The Australia Institute this month estimated that a royalty holiday for Adani could cost Queensland nearly $1.2 billion in revenue.
"This policy would effectively give Adani free coal for five years and discounted coal for another four," it said.
The Climate Council said the proposed deal was more evidence the project did not stack up financially.
"It appears the only possible way this may go forward is with very big subsidies from the Commonwealth and the Qld Government," the council's Professor Will Steffen said.
"The big four banks have said, 'No thanks, this is a bad investment'."

Links

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• Adani May Face Fine Over Sediment Released In Floodwaters After Cyclone Debbie
• Westpac's Anti-Coal Stance Exposes A Coalition Out Of Sync With Business And Public On Climate
• Big Four Banks Distance Themselves From Adani Coalmine As Westpac Rules Out Loan
• Adani Coalmine At Heightened Risk Of Becoming A Stranded Asset, Report Says
• Adani Is Not Just Another Coalmine, It Is A Turning Point For The Nation
• Adani's Coal Will Worsen The Lives Of India's Poorest
• Australia’s Climate Bomb: The Senselessness Of Adani’s Carmichael Coal Mine
• John Hewson Says $1bn Loan To Adani The 'Last Thing' Coalition Should Be Doing
• Adani Boast Puts $1b Coal Project Loan In Doubt, As New Footage Shows Abbot 
• Adani Firms On $1bn Loan As Turnbull Promises To 'Fix' Native Title Problems