Adani has postponed a final investment decision on its controversial Carmichael coal mine as the Indian conglomerate waits for the Queensland government to propose a royalty agreement.
Days after reports emerged that the Palaszczuk Labor government was considering offering Adani a "royalty holiday", the company's board chose to abort any final sign-off for the $21 billion project.
On Monday Adani's spokesman in Australia, Ron Watson, told Fairfax Media the company had never sought a holiday on its per-tonne royalty obligations, but rather a "sliding scale" that would allow Adani to pay "every cent" in an agreed schedule.
"You catch up. You pay every cent," he said.
Mr Watson said that when the company became aware a cabinet meeting of the Queensland government had not considered the matter, Adani directors chose to defer committing funds to the project.
"The company decided to defer consideration of the final investment decision," he said.
Amid a growing public backlash at the potential environmental and climate ramifications of what would be Australia's biggest ever coal mine, Adani had aimed to lock in its investment by the end of this month.
The project is heavily backed by the federal Coalition, including Resources Minister Matt Canavan, who has championed a $1 billion public loan to build the needed rail infrastructure to open up the Galilee Basin, where Carmichael will be dug.
Under Opposition Leader Bill Shorten, Labor has backed the mine but not the use of taxpayer money to get the project over the line.
On Friday, Queensland Treasurer Curtis Pitt did not deny a report on Thursday that a $320 million "royalties holiday" was on the table to help progress the $21 billion project, but he insisted "no decision has been made on anything".
Mr Pitt insisted the state government was not interested in ad hoc arrangements and would provide an "open and transparent framework" for all proponents, while still recognising "first mover advantage" to open up areas such as the Galilee.
Queensland takes a 7 per cent royalty on every tonne of coal sold below $100 a tonne, rising to 12.5 per cent up to $150 a tonne and 15 per cent after that. Thermal coal currently sells for about $97 a tonne, according to the RB Index. Queensland received about $2 billion in revenues from coal producers in the past year.
The Australian Conservation Foundation, which is among 130 groups involved in trying to stop the mine, last week expressed horror at the prospect of any royalty relief for Adani.
On Monday, GetUp said Adani was trying to "extort favours" from the Palaszczuk government by putting the investment decision on ice.
This story first appeared on The Sydney Morning Herald.
