MELBOURNE (TIP): Indian conglomerate Adani Group today agreed to pay royalties on coal produced from its $16.5 billion Carmichael coal project in Australia after it struck an agreement with the Queensland government to help the controversy-hit project move forward.

While Adani did not disclose the royalties it will pay, Australian media reported that the Group will pay a flat rate of $5 million in coal royalties a year for five years, with interest to be paid on any royalties deferred.

The agreement with Queensland government “meets Adani’s expectations and requirements,” the company said in a statement, without providing details of the accord.

With an agreement with state government in place, Adani said a final investment decision on the mine would be made at the company’s next Board meeting.

It had last week deferred an investment decision on the project scheduled for May 29 after delays in reaching an agreement on royalty terms.

In the statement, Adani chairman Gautam Adani described the move as a “benchmark decision” that showed the “strong commitment” of the Queensland government to the project.

Source: PTI