We don't need royalties freebie: Adani
ADANI has confirmed that its Carmichael megamine is viable, even without the $320 million in royalties relief from the State Government.
But the company says its $2 billion rail project is well short of being commercially viable due to demands from the Federal and State governments that it be open-access, common user infrastructure.
"This means we are being required to solely bear the significant upfront costs of expanding the line capacity - including additional loops for the increased line traffic - for mines that may not come on line, or if they do come on line, it will not be for some time,'' an Adani spokesman said.
"The mine is viable - no question.''
He said the rail line would need both the royalties relief as well as the proposed $900 million concessional loan from the Northern Australia Infrastructure Facility.
The company has no time frame of how long it is prepared to wait for the State Government to make a decision on the royalties issue which forced a split in Cabinet when the Left faction rejected concessions as a broken promise.
"Until the Queensland Government makes a decision," the spokesman said.
Premier Annastacia Palaszczuk yesterday told Parliament the deal would still go through Cabinet as part of a framework for the entire Galilee Basin.
Adani supporters yesterday pointed to a long history of the State Government using taxpayer funds to prop up industry.
Among the more successful was a $10 million deal to lure Virgin to Brisbane with payroll tax concessions, which delivered 750 jobs to Queensland.
The Federal and State governments also poured $250 million into the ultimately disastrous Australian Magnesium.
To lure a Comalco alumina refinery to Gladstone the Queensland Government provided about $150 million in common user infrastructure while the Federal Government provide a $137 million dollar repayable loan.