Construction has started at Adani's Carmichael Mine site.
Construction has started at Adani's Carmichael Mine site.

Royalty deal to be struck between Adani and State Govt

A ROYALTIES agreement must be struck between Adani and the State Government for the coal it will mine from its Galilee Basin site by September 30.

The miner and Treasury had until the end of last month to agree on a date to agree on a deal after Coordinator general Barry Broe was called in to oversee the remaining approvals in a major about-face from Annastacia Palaszczuk on the project.

That about-face came in the wake of Labor's Federal Election drubbing in Queensland's coal country with voters as well as State and Federal MPs venting their anger at the mishandling of the Adani project.

Regional MPs were threatening a rebellion unless the project was finally dealt with.

A spokeswoman for Adani said the agreement timing had no impact on construction.

"We have been working collaboratively with the Coordinator General and Queensland Treasury in order to finalise the royalty agreement in line with the Coordinator General's schedule," she said.

"We now have a date in place, which was agreed upon by both parties for completion of the agreement.

"Details of the royalties agreement are commercial-in-confidence. The royalties agreement has no impact on our ability to continue progressing with construction works."

The royalties deal has a bone of contention for the State Government since its first term when an extraordinary internal brawl over exactly what deal would be cut spilled out into the public arena.

Adani's final environmental approval for its scaled-down $2billion project - its groundwater management plan - was signed last month.

The miner predicts it will be exporting its first shipment of coal within two years.