Adani Group signs royalties agreement with Queensland government on Carmichael mine

The Adani Group on Thursday said that it has signed that a royalties agreement with the Queensland government concerning the Carmichael mine project.

The Ad Group on Thursday said that it has signed that a royalties agreement with the Queensland government concerning the Carmichael mine project.

It said the Carmichael project will generate billions in mining taxes and royalties that go to the Australian and Queensland Governments in the first 30 years of operations.

"Consistent with the Queensland Treasurer's comments on Thursday 1 October, we can confirm that the royalties agreement has been signed by both Ad and the Palaszczuk Government. The Carmichael Project will generate billions in mining taxes and royalties that go to the Australian and Queensland Governments in the first 30 years of operations. This money will help build schools, hospitals and roads for Queensland," an Ad spokesperson said.

The spokesperson said that construction of the mine and rail is well underway with more than 1,500 people now employed and more than USD 1.5 billion in contracts awarded on the Carmichael Project.

"More than 88 per cent of our contracts are being delivered in Queensland and have been spread across all corners of the state to give as many regions as possible the opportunity to benefit from our project, while also enabling us to tap into the highly-skilled construction and resources industry workforce that Queensland possesses," the spokesperson said.

The statement said mining has cushioned the Queensland and Western Australian economies from the worst of the devastating economic impact of the COVID-19 lockdowns and "we are proud to be a part of that".

The spokesperson said that construction of the Carmichael Project is on track to produce coal in 2021.

Sources said Royalties Deferral and Repayment Agreements allow miners to delay royalty payments to free up cash flow at the beginning of their projects if they meet the obligation later with interest and reinforces Ad Group's commitment towards the development of the area of operations - in this case - Queensland, Australia.

( With inputs from ANI )