Thousands of jobs at risk as Adani puts mine on hold
INDIAN mining giant Adani have put the final decision regarding its sprawling Carmichael Coal Mine on hold, pausing while the Queensland Government quarrels over how to collect royalties.
The delay means the project, worth billions and purported to deliver more than 1000 jobs, is in purgatory until the Palaszczuk Labor Government makes a decision.
Adani has been seeking a delay to paying royalties in the first years of production while the gigantic mine ramps up. Ultimately the company would pay back any delayed royalties once the mine's exports reach a certain point.
The delay of paying government fees has been described as a "royalties holiday", something denied by Adani.
By late yesterday Queensland Government plans to put the royalties holiday or deferral to Cabinet were called off after in-fighting between the government's left and right factions.
Reacting to that, Adani has cancelled its own plans to make its final decision on the project this afternoon.
Opposition Leader Tim Nicholls characterised the delay as "indefinite", an interpretation not denied by Adani's spokesman.
Talking to News Corp on Monday, the Adani spokesman said with the Cabinet not dealing with the royalty issue this afternoon, the Adani board would delay its own planning for the mine.
"In light of that 'no decision', Adani has decided that its board will not consider final investment decision until the government makes a decision on royalties," he said
When asked if Adani would go-ahead with the mine if the deferral was granted, the spokesman said he would not speak on behalf of the company's board.
Mr Nicholls said billions of dollars in investment and much-needed Queensland jobs were now in the balance thanks to divisions in the Labor party.
"This is putting thousands of Queenslanders' jobs at risk," he said.
"This is putting billions of dollars of investment at risk."