Adani Enterprises defers investment decision on Australian coal project
Adani Indian companies Monday postponed the final investment decision on their long-running Carmichael Australia coal project while the Queensland government had not yet signed a royalty agreement for the mine.
The company plans to take a final investment decision (FID) at the proposed coal mine and lane 25 million tonnes per year by the end of May.
“Adani is informed that the Queensland Council of Ministers has not considered submission or royalties decisions by the Adani project today’s decision,” said company spokesman in Australia, Ron Watson.
“In light of this, Adani today postponed the Board’s decision on the IDF until the government makes a decision.”
The Queensland government is considering ways to extend royalty payments to promote employment and investment in a state characterized by declining output over the last five years.
However, the Labor government faces opposition within its own ranks, having vowed that no taxpayer money is used to subsidize the controversial Carmichael project in the Galilee Basin without exploding.
Queensland’s Prime Minister Anastasia Palazsczuk said on Monday the issue had not been discussed by the Cabinet but said any change in the state’s royalty regime would not only be for Adani but would be a series of new developments Miners and gas.
“I think that as a government, we can see clearly to try to open the Galilee (and other areas),” he told reporters.
“At the end of the day, it’s about work, and that’s what people want from Queensland.”
Adani fought green groups over the past six years, seeking to block what would become Australia’s largest coal mine. Opponents argued that coal exports could fuel global warming and that the project would require port expansion that could damage the Great Barrier Reef.
The expansion of the port is no longer necessary as the company reduced the first phase of the mine to 25 million tonnes from 40 million tonnes per year as it aims to improve affordability and my rail project around 4 billion Of dollars, instead of more than 10 billion.