Adani Group may exit $16.5 billion Carmichael coal project in Australia

Adani Group may exit $16.5 billion Carmichael coal project in Australia

India’s Adani Group could walk away from its $16.5 billion Carmichael coal project in Australia unless a royalties deal can be reached with the state government, according to federal Resources Minister Matthew Canavan. The Queensland government’s failure to agree the terms of the royalty regime for the mine may jeopardize the development in the state’s Galilee Basin, Canavan said in a phone interview on Wednesday. Adani was due to make a final investment decision on May 29 for the Carmichael mine, but deferred that on Monday citing uncertainty over royalty payments.

Adani’s approval for the project “is contingent on the Queensland government coming to a decision on their royalties policy”, Canavan said. “You can’t expect Adani to make a multi-billion dollar decision if they don’t know what tax they will pay. The ball is now in the Queensland government’s court.” Read More…

 

 

 

Credit By: Financial Express

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