Australia's Queensland government and India's Adani have come to an agreement over royalties for the Carmichael thermal coal mine in the Galilee Basin, the state government said Wednesday.
Adani last week announced it would defer the final investment decision for the project, which had been scheduled for this month, due to indecision by the state government over the issue of royalties.
The Queensland government then announced over the weekend that Adani would need to pay full royalties for the project and that there would be no "royalty holiday."
"The agreement with Adani adheres to the principles in the resources framework we outlined at the weekend," Queensland Premier Annastacia Palaszczuk said Wednesday.
"Every cent of royalties will be paid and any deferred royalties will be paid with interest," she said.
Adani said the agreement meets the company's expectations and requirements and means the project is back on track with a FID to be considered at the next board meeting.
Phase one of the project aims for production of 25 million mt/year and the construction of a 388-km open access, common user rail line, Adani said.
Peak mine production in later phases will rise to 60 million mt/year and there will be an expansion of port capacity to 120 million mt/year at the Adani-owned and operated Abbot Point Coal Terminal, from 50 million mt/year, it said.
