Adani will not be offered a discount on royalties on its Carmichael coal project after State Cabinet pushed through a new development policy late yesterday.
Premier Annastacia Palaszczuk said the policy would unlock development in the Galilee and Surat basins and the North West Minerals Province and new jobs and new business opportunities.
The revised model will apply to future resource development proposals in the three regions and will replace ad hoc arrangements negotiated in the past.
“State Cabinet has unanimously agreed to a new policy approach for the future development of the Galilee and Surat Basins and the North West Minerals Province,” Ms Palaszczuk said.
“Under this new policy, the Adani Carmichael mine will pay every cent of royalties in full.
“There will be no royalty holiday for the Adani Carmichael mine.
“Opening up these three regions for development has the potential to support thousands of new jobs that are needed in regional centres along the coast as well as in outback Queensland.
“This will squeeze every dollar and every job out of these projects.”
Earlier this week Adani confirmed it had deferred its Final Investment Decision for the Carmichael project after the Queensland Cabinet had failed to make a decision on the royalties issue.
A spokesman said today the company was still assessing the matter following the new policy vote.
Deputy Premier Jackie Trad said the Palaszczuk Government’s policy delivered on Labor’s election commitments.
“All royalties will be paid and if they are deferred they will be paid with interest and with security of payment in place,” Ms Trad said.
“That’s more money for our state to spend on infrastructure, renewables, health and education.
“Consistent with our election commitments, cabinet has determined that any NAIF funding needs to be between the Federal Government and Adani.
“There will be a new financial assurance model that ensures operators comply with environmental conditions and cover rehabilitation costs.”
Earlier this month the ABC reported that the government was considering giving Adani a royalties discount which could have cost up to $320 million in lost revenue to the state.