Adani royalties deal languishes after main parties miss two deadlines

The royalties deal between Adani and the Queensland government has still not been reached, several months after deadline.

Adani Mining chief executive David Boshoff. Picture: Cameron Laird

The royalties deal between Adani and the Queensland government has still not been reached, more than seven months after the deadline for the crucial contract was extended for the second time.

The agreement, which would involve a deferral and repayment agreement of royalties, is an ­essential step before the Indian mining giant can export thermal coal from its Carmichael mine in the Galilee Basin in central Queensland.

It has been the subject of infighting in the Labor government since an in-principle deal was ­tabled in 2017.

The co-ordinator general had originally said the mining giant and Treasury needed to reach a deal by last September 30, shortly after the scaled-down $2bn mine was granted final approval in June. When that deadline was not met, it was extended to November 29, but again, that deadline was missed. No new date has been set.

Jackie Trad has since been ­replaced as treasurer by Cameron Dick, and former under treasurer Frankie Carroll has been ­replaced by Rachel Hunter.

A spokeswoman for Mr Dick on Friday said Ms Hunter was working with the company on the deal. The spokeswoman did not respond to a question about whether the royalties agreement would be reached before the ­October 31 election, leaving open the possibility that the contentious mine would again feature as an election issue.

The proposed royalties deal, which could be worth hundreds of millions of dollars, has been criticised by environmental groups and think tanks who have equated it to a loan because it would effectively mean Adani is given a relaxation on paying royalties in the mine’s early stages.

An Adani spokeswoman was similarly tight-lipped on Friday, saying that details about the proposed agreement and the hurdles to signing it were private.

Labor’s result in mining electorates at last year’s federal election shocked the party and prompted Premier ­Annastacia Palaszczuk to call on co-ordinator general Barry Broe to oversee the remaining approvals on the stalled project and set a timeline for key decisions to be made.

The company has said the royalties agreement has no impact on the construction of the mine site, which hit a significant milestone this week when excavation of the main pit began.

Newly-appointed Adani chief executive David Boshoff, who replaced Lucas Dow after he resigned last week, said the company was on track to export its first coal next year.

Mr Dow remains on the Adani board as a non-executive director.