Adani, Queensland Government enter royalty agreement for Carmichael project

The Queensland Government has signed a royalty agreement with Adani for the Carmichael coal project, bringing more certainty to its development.

This is the first agreement under the state government’s recently announced royalties policy for the Galilee and Surat Basins and the North West Minerals Province, which requires companies with approved greenfield projects to pay all royalties due to the state.

Queensland premier Annastacia Palaszczuk said the agreement would bring more regional jobs and boost the state’s economy, while also ensuring strict environmental guidelines including no dumping of dredge spoil in the Great Barrier Reef Marine Park.

She said the agreement adheres to the principles the state government outlined in its latest policy.

“Every cent of royalties will be paid and any deferred royalties will be paid with interest,” Palaszczuk said.

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

The agreement has added more certainty to the $21.6 billion Carmichael project, which was thrust into uncertainty when Adani delayed its final investment decision due to a lack of clarity over royalties.

The specific details of the agreement are yet to be released publicly, the ABC reports.

Federal resource minister Matthew Canavan supported the agreement with Adani and called it positive news for Queensland.

“I welcome the fact that belatedly, the Queensland Government has sorted out their internal ructions and divisions and are now fully behind the project, signing a deal last night with Adani to proceed with the project on a royalties arrangement,” he said.