Adani’s strongest sign
Adani puts ball firmly back in their own court after resolving royalty impasse.
Wednesday 31 May 2017
In the most positive sign for the proposed Galilee Carmichael Coal project in the last two years, proponent Adani said overnight it would “consider” a Final Investment Decision (FID) for the proposed mine at its next board meeting.
Adani made the comments just hours after reaching an agreement with the State Labor Government over a royalty structure for the proposed mega-mine north-west of Clermont.
Adani Chairman Gautam Adani said the FID would definitely be discussed at the next meeting.
“Adani Australia today reached an agreement with the Queensland Government on royalty payments for the $16.5 billion Carmichael coal project,” he said.
“After State Cabinet approval, the agreement with the State Government meets Adani’s expectations and requirements and shows a strong commitment by the State Government to the project and is a benchmark decision to take this project forward.
“I thank the Premier, Annastacia Palaszczuk, and the elected members of the State for their continued support to make this happen.
"I also wish to thank the Prime Minister, Malcolm Turnbull, and Opposition Leader, Bill Shorten, for their support for the changes to the Native Title Bill.”
“The royalties arrangement means the project is back on track to generate 10,000 direct and indirect jobs in regional Queensland and the Adani parent company board will consider the Final Investment Decision at the next board meeting.”
The project, which is the most advanced in the Galilee Basin, involves first stage coal production of 25 million tonnes per annum, with later expansions theoretically taking peak mine production to 60 mtpa.
It also requires the construction of a 388-kilometre standard gauge open access, common user rail line from Abbot Point to the mine.
To accommodate peak production, Adani would expand the Abbot Point port capacity from 50 mtpa to 120 mtpa.
Late last year Adani made headlines when it reaffirmed its commitment to Townsville as its regional headquarters if the mine went ahead.
Adani also flagged important roles for other Central Queensland towns, including Bowen for its rail & port offices, Mackay for mining services, and possibly Rockhampton as a FIFO hub - although that role may also end up in Townsville.While the news will be welcomed by mining regions who have been struggling through the mining downturn, it’s not yet an iron clad guarantee that the project will ever happen.