Adani’s Carmichael project on track after royalty agreement
Adani Enterprises Ltd on Tuesday said that it has reached an agreement with Australia’s Queensland government on royalty payments for its controversial $16.5 billion Carmichael mine project.
The royalty arrangement means the project is back on track, the company said in a filing with BSE.
Adani Enterprises will take a final investment decision on the project at its next board meeting, the firm said, without giving a date. Last week, the board had deferred a final decision pending the royalty agreement.
Calling this a benchmark decision to take the project forward, Adani said in its statement that the agreement, which meets its expectations and requirements, shows a strong commitment by the Queensland state government to the project.
The firm thanked Australian Prime Minister Malcolm Turnbull and opposition leader Bill Shorten for their support for the changes to the Native Title Bill.
The amendment bill, expected to be passed in the Australian parliament next month, makes it easier for companies like Adani to sign land rights agreements with indigenous land owners.
On August 19, Adani won a major legal battle when the Australian apex court dismissed appeals lodged by indigenous community member Adrian Burragubba as well as a Brisbane-based environmental group against the project.
Last month, Prime Minister Turnbull met Adani Enterprises founder-chairman Gautam Adani during his three-day visit to India. During the meeting, he reportedly reaffirmed his government’s commitment to the company’s coal mine project.