NOW FOR THE NAIF

Royalty agreement puts mega mine back on track

ADANI’S Carmichael coal mine is back on track after the company agreed to a royalties deal with the State Government after more than a week of uncertainty.

The mine is now a step closer to generating 10,000 direct and indirect jobs across regional Queensland, including the North.

It comes after an embarrassing factional split in Cabinet and means the mine awaits only loan approval by the Northern Australia Infrastructure Facility.

The Government would not comment on the specifics of the deal last night.

Adani chairman Gautam Adani said the Government had made a “strong commitment” with its “benchmark decision”.

It is understood the final investment decision on Carmichael will be made by Adani’s board of directors within weeks.

ADANI’S Carmichael coal mine is back on track after the Indian mining conglomerate agreed to a royalties deal with the State Government.

It is a major step forward for the mine project which is predicted to generate 10,000 direct and indirect jobs across regional Queensland.

Adani chairman Gautam Adani said the decision was a “strong commitment” by the State Government and was a “benchmark decision”.

“I thank the Premier Annastacia Palaszczuk and the elected members of the state for their continued support to make this happen,” he said.

Treasurer Curtis Pitt also confirmed in writing the Government would honour its deal with the Federal Government to administer a loan for Adani’s rail line if granted by the Northern Australian Infrastructure Facility ( NAIF).

It followed a week of uncertainty when a factional brawl erupted within Labor over a mooted $ 320 million royalties holiday for the project.

Then on Saturday Deputy Premier Jackie Trad stated the Government would withdraw from the NAIF arrangements, playing no part in the loan.

The uncertainty saw Adani delay making its final decision on the project. It is understood that decision will now be made within weeks.

Mayor Jenny Hill said yesterday’s decision by Adani was great news for Townsville.

“It should be seen as a boost for the region,” she said. “If the project is back on track, we hope that the next phase will be the announcement of the fly- in fly- out hub and the jobs that will flow from both those opportunities.”

Cr Hill said the agreement gave certainty to other mines seeking to open in the region.

“Adani is the first group to lead this but it also means new mines that are planning to open up can actually look at this model and take advantage of it,” she said.

“As many people know who live in the regions, it takes nearly 10 years to open a mine from concept to construction and operation.

“This ( news) means they can model their cashflows with far more certainty.”

Townsville Enterprise chief executive officer Patricia O’Callaghan said the development showed Queensland was ready to do business.

“Townsville was seriously waiting for this project to be given the green light and this will be a project of one of many in the Galilee Basin,” she said. “It’s a vote of confidence for business.”

Resources and Northern Australia Minister Matt Canavan welcomed the deal but said it was unfortunate it had taken “a circus to get here”.

“Let’s hope that we can move on now,” he said. “The NAIF is looking at the loan and will assess it rigorously.”

Adani spokesman Ron Watson last night said the company was thankful for the support of local communities and their representatives. Editorial, page 22