Adani Enterprises Ltd. reached an agreement with the Queensland, Australia, government over the royalty payments for the company's US$16.5 billion Carmichael coal project, paving the way for the project's development, Bloomberg News wrote May 30, citing a company statement.
The company earlier postponed the final investment decision on Carmichael, seeking more clarity over the project's royalties as the state government considered whether to lower or defer the royalty payments.
A few days ago, Queensland Premier Annastacia Palaszczuk said Adani would have to pay full royalties on its preproduction-stage coal project under a new policy unanimously agreed upon by the state's cabinet.
Adani did not disclose further details on the royalty deal but said the agreement "meets Adani's expectations and requirements."
The miner also noted that the final investment decision for Carmichael will be considered during its next board meeting, which The Australian reported will be held within weeks.
In a separate, same-day report, the newspaper wrote that the deal will see Adani paying a flat rate of A$5 million per year in coal royalties for five years, with interest on any royalties to be deferred.