Adani's $700 million royalty holiday

Media Release 25/11/2019

Queensland government and Adani royalties deal deadline fast approaching.

On Monday the  Mackay Conservation Group handed a petition with more than 1200 signatures to  Mackay state MP Julieanne Gilbert calling on the Queensland government to keep their election promise not to use public money to fund Adani’s mega coal mine in central Queensland. 

The Queensland government are currently in negotiations to gift the Adani mine a royalty-free holiday that would allow Adani to defer royalty payments to Queensland for up to 10 years. Assuming the mine ever become profitable. 

The Mackay conservation group have gathered the petitions from our support in central Queensland and around the country because we are concerned that the Queensland government are on the cusp of subsidising Adani’s Carmichael mine to the tune of hundreds of millions of taxpayer dollars.

The agreed deadline for the negotiations is the 30th of November though taxpayers may never know the terms of any agreement as both parties have remained secretive about the talks, citing commercial in confidence.

The previous deadline for negotiations of 30th of September passed without an agreement or an explanation from Adani or the Government  but spokesperson for the Mackay Conservation Group Mr Michael Kane said  that Adani Australia are so heavily in debt that the company  may not have any  assets or cash reserves that the Queensland government could accept as collateral for such a  massive loan.

“We  know that the government is  considering a deal that could effectively save or delay Adani paying  up to $700 million in royalties.''  Said Mr Kane. “In the last state election, the premier promised that no government funding would be given to Adani and that the  Carmichael mine must stack up financially.”

“Any royalty holiday for Adani would  break that promise and would amount to an enormous  government subsidy or taxpayer-funded loan.”

“Australia’s mineral resources belong to all of us and royalties are the price that every mining company has to pay so that Australian receive a fair return for our non-renewable resources. Why should Adani get special treatment when every other mining company in Australia have to pay their fair share.”

“The Queensland government has already done far  too much to support a project that will contribute to the destruction of the Reef and guzzle up to a trillion litres of the ground and river water over the life of the mine.” 

“Significant questions have been raised by financial experts about Adani Australia’s financial position. Adani Australia is currently carrying billions of dollars in debt and hasn’t paid any real taxes in Australia since 2011.  If the Carmichael project turns out to be unviable or fails, then taxpayers will be left to foot the bill to the tune of hundreds of millions of dollars.”

“The fact that Adani is asking for a special Royalty deal highlights that the project does not stack up financially. There isn’t a single financial institution in the world who  are prepared to finance Adani’s mine why is the Queensland government even considering it?”

End of release.

For interviews contact

Michael Kane 

[email protected]

Mackay Conservation Group

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#StopAdani Mackay meeting & Christmas Party

You're invited to join us for an action-packed night full of fun climate action planning and Christmas celebrations!

It's our last #StopAdani meeting for the year - and what a year it's been! Join a group of dedicated and passionate locals as we end our year with a bang and plan our next big steps for climate action in 2020. Afterwards, we'll celebrate with music and food! Please BYO drinks and a plate to share 🥂🎄

RSVP HERE!

WHEN: Thurs 28th Nov, 2019
TIME: 5:30 - 8PM
WHERE: Environment Centre, 156 Wood St MACKAY

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Crazy ants threaten Whitsundays

yellow crazy ant worker and queen on a leafThe Whitsunday Region with its beautiful rainforests and spectacular islands attract hundreds of thousands of visitors each year. Most of them are welcome but there is one particular type of visitor that we wish had never arrived.

Back in July it became public knowledge that an infestation of Yellow Crazy Ants had been found around Shute Harbour. Investigations have revealed that they have established themselves in the Conway National Park and on land outside the park.

Yellow Crazy Ants have caused severe disruption to natural systems. On isolated Christmas Island several species of crab have evolved unique behaviours. The Christmas Island Red Crab spends most of its life on land, only returning to the marine environment to breed in a spectacular annual mass migration. The red crabs recycle nutrients such as leaf litter, a role that is essential to maintain the health of the island’s forests.

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Adani wants your money for its dirty mine

Adani is currently in private negotiations with the Queensland Government to secure a royalty holiday so they can afford to build their mega coal mine in the Galilee Basin. 

The deal could extend until the mine is profitable, which most financial analysts think it will never be. In documents disclosed under Freedom of Information laws, Queensland Treasury officials described the Adani mine as “unbankable”.  At stake is up to $700 million in royalties that should be used to fund Queensland’s firefighters, schools, hospitals and roads.

The government has set itself a deadline of November 30 to make a decision but Queenslanders may never know the details. Both Adani and the government are refusing to divulge information about the secret agreement, citing commercial in confidence.

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At 17, fresh out of school, I landed my first job as a coal miner and have been doing that ever since. I grew up in a coal heartland of Wollongong, south of Sydney, the location of some of the oldest mines in the country. As a teenager, I took mining for granted, just like I took the amazing beaches, beautiful escarpment and bush for granted.

I have worked in all aspects of underground coal operations, including longwall extraction, developing access roads, methane drainage and supervising coal mining crews in these processes.

For the last two decades I have been lucky to live and work in Queensland. I have worked through boom and bust cycles where mining corporations hired workers, then laid them off and shut mines when it suited. I witnessed the growth of automation which has led to a contraction of jobs, and will continue to do so in the future. I have also seen the industry talk up job prospects to get their latest mine approved, and then seen the actual numbers drop once production began.

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