- by Graham Holton
- The Guardian
- Issue #2160
Carmichael coal mine. Photo: Adani Mining Australia – wikimedia.org (CC BY-SA 4.0)
The Queensland LNP government has negotiated with Bravus (formerly Adani), to defer royalty payments on the Carmichael coal mine. The former Labor government had signed a royalty deferral deal with Bravus in 2020, subject to ‘proceedings.’ Treasurer David Janetzki said those proceedings will now end, with the LNP government having made a new arrangement with the company. The government insists the only difference between their deal and Labor’s will be Bravus’s $50 million future investment.
Janetzki said, “there will be no additional deferred royalties.” He did not say how much interest would be charged or when the deferred royalties would be paid, due to commercial-in-confidence arrangements agreed to under Labor’s deal. So Queenslanders don’t know when the deferred royalties will be paid, or how much interest will be charged.
The Qld government has a specific royalty regime for coal, and under the Mineral Resources Act 1989 mine producers must pay royalties. Premier David Crisafulli has made significant changes to the royalty scheme based on present coal prices. Under the $50 million scheme the Carmichael mine will expand its production by 30 per cent, over the next four years, to 16 million tonnes per annum. Bravus chief operating officer, Mick Crowe, said this deal will allow the mine to “continue to grow and invest in the 1,200 people who work out here. This creates more certainty for them in the future.”
The premier said: “That money will be used to expand the workers’ village, create a new dam, a rail network hub for maintenance, and additional engineering works.” It will open “the door for half a billion dollars of investment and will enable an expansion to the tune of about a third” of the mine, thereby “increasing productivity.”
Labor and the Greens have accused the government of giving the mining giant a ‘free pass.’ Shadow Treasurer, Shannon Fentiman, described the deferral as a “secret sweetheart deal to provide Adani with a royalty holiday.” Greens MP, Michael Berkman, said, “What are Queenslanders getting out of this deal, and if it’s so great, why can’t we see the details?”
As Adani, Bravus has donated generously to the LNP.
