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 

michael@conservationgroup.org.au

Mackay Conservation Group


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