Adani's Carmichael coal mine seals royalty pact with Queensland govt

Firm mum on royalty amount; enviro groups have opposed project citing damage to marine ecosystem

The Adani Group reached an agreement with the Australian government over the royalty payment for the contentious Carmichael coal mine in the country.

"Adani Australia today reached agreement with the Queensland Government on royalty payments for its $16.5 billion Carmichael coal projects. After State Cabinet approval, the agreement with the State Government meets Adani's expectations and requirements," the company said in a statement, but did not disclose the royalty amount.

The Carmichael project has been facing resistance from several environment groups who have opposed the project citing damage to the marine ecosystem across the coastline where the project will come up.

"The royalties arrangement means the project is 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," Adani Group said in its statement.

The total cost of the 25-million-tonne Carmichael coal project is Australian Dollar (ASD) 22 billion and includes a 380-km rail line.

"The Adani Group has till now spent capex of ASD 1.1 billion on the mine, ASD 0.2 billion on the rail line and ASD 1.8 billion on the commissioned port facility of 50 million tonnes," Jeyakumar Janakraj, Chief Executive and Country Head, Adani Group Australia had told Business Standard earlier.

The coal from the Carmichael coal mine would be imported to India. It received approval last year to build permanent rail line till the port to transport the coal. Company sources said more than $70 million for almost 800 km of steel railway tracks would be manufactured by Arrium Steel division, One Steel, at Whyalla in South Australia.