Adani Agrees To Pay Royalty For Carmichael Coal Mine In Australia

India's Adani Group has agreed to pay full royalties on its $16.5 billion Carmichael coal project in Queensland, Australia. Adani Australia reached an agreement with the Queensland government on royalty payments, according to the company's statement.

This comes after the Queensland state cabinet unanimously agreed to not grant a royalty exemption to Adani Enterprises' proposed mining project on Friday. Adani had decided to put the project on hold pending further clarity on royalties.

The Carmichael coal project, first proposed in 2010, has faced several delays with environmental activists, who raised concerns about its impact on the ecosystem, which also includes the now dying Great Barrier Reef. Adani had argued that the project could fuel power generation for 100 million Indians while creating 10,000 jobs in Queensland.

With the royalty agreement in place, the Carmichael coal project will be back on track, the company said. Adani will now consider the final investment decision at the next board meeting, the media statement added.

The project, which the company claims as the most advanced in Australia's Galilee Basin, is expected to produce 25 million tonne of coal per annum in its first phase. This will also include the construction of a 388 kilometre open access rail line. The mine production will go up to 60 million tonne per annum in the later phases, the statement said.

To accommodate the later mining stages, Adani will expand the capacity of its bulk coal port facility in North Queensland from 50 million tonne per annum to 120 million tonne per annum.

Shares of Adani Enterprises, the listed entity of the Adani Group, soared over 7.8 percent during the day's trade following the announcement.