Coal News We love to talk!
The Queensland government has offered Indian mining giant Adani a deal that would result in it paying just 2 million Australian dollar a year in royalties on its proposed Carmichael coal mine project in Australia, according to a media report.
The so-called "royalties holiday" for the proposed 21 billion dollar Galilee Basin facility would expire after seven years and could cost taxpayers 320 million dollar in lost revenue, ABC News reported.
However, rejecting the claim, Adani Australia spokesperson said no such agreement with the state was signed so far.
The ABC report claimed that the agreement between the state and Adani Australia would see the company pay just 2 million dollar a year in royalties on the start of the project and will later increase after several years.
Queensland has a system for coal mines in which a smaller amount is paid at the start which increases as production at the mine increases. ABC said that state Premier Annastacia Palaszczuk and Treasurer Curtis Pitt have been negotiating the deal with Adani.
It said that Palaszczuk, who neither confirmed nor denied the royalty agreement, said, "What we know about this project is that it is vital for regional jobs." The report further claimed that Adani was seeking a total royalty holiday from the start of production that would have seen the company pay nothing.
Shadow treasurer Scott Emerson has slammed the plan, saying the government needs to explain why taxpayers' money is being used to benefit just one mining project. "Labor said previously, heading into the election, they would never give taxpayer funds to one company," Emerson said on Thursday.
"I think this is an extraordinary situation to see this government doing a secret deal behind closed doors to favour one company."
- Government kick-starts process of CIL restructuring; invites bids Read more
- Govt mulls introducing fixed-cost component in renewable energy tariff Read more
- Minister to decide on fate of three low-bid coal blocks Read more
- Suzlons wind farm commissioned in Uruguay Read more
- Coal India to revoke ranks which do not have any jobs, says executive Read more
- Cabinet clears award of 31 contracts for discovered small fields Read more
- Coal India to invest Rs 5,900 crore, clears 3 projects of 40 mn tonnes capacity Read more
- Rail Budget 2015: Power tariffs may rise after hike in freight rates for coal Read more
- RIL entitled to recover cost on unviable gas discovery: Parliament's Public Accounts Committee Read more
- Coal India to cut prices to take on competition Read more