Adani’s $16.5 Billion Aussie Mine Rattled by Tax Deal Delay – by Perry Williams (Bloomberg News – May 24, 2017)

https://www.bloomberg.com/

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 delayed 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.”

Adani Enterprises Ltd., the flagship company of the Adani Group, said Wednesday it has deferred some budget approvals for the mine until it receives clarity from the state government on royalties.

Australia’s largest coal project — which could fuel power generation for 100 million Indians and create 10,000 jobs in Queensland — has been delayed several times since first being proposed in 2010 due to protests and court claims from green groups concerned about its environmental impact.

For the rest of this article, click here: https://www.bloomberg.com/news/articles/2017-05-24/adani-may-exit-16-5-billion-mine-without-tax-deal-canavan-says

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