Skip to main content

Adanis "offered" $320 million royalties holiday for Australian coalmining project, as expert says it is "not viable"

Queensland premier with chairman Gautam Adani
By A Representative
In a major boon to India’s powerful industrial group, the Adanis have been offered a $320 million “royalties holiday” in their prestigious coalmining project in Australia. The offer, reports Australian Broadcasting Corporation (ABC), requires the Adanis to pay “just $2 million a year in royalties once the $21 billion project starts operating.”
Pointing out that “the royalty rate will then increase after several years”, quoting sources, ABC said, “Under the proposed agreement, the state would lose out on a total of $320 million in royalties”. The offer has come following Queensland state premier Annastacia Palaszczuk’s negotiations with Adanis over the proposed royalties holiday.
Following the negotiations, the report quotes Palaszczuk as saying, "What we know about this project is that it is vital for regional jobs." The Carmichael project is expected to produce 25 million tonnes of coal a year in its first phase.
In a separate report, the British Guardian reports, it is a “$320m deferment of Carmichael coal export royalties”, adding, the Queensland government offer comes after “a former climate change adviser to the federal government said risks inherent in Australia’s largest proposed coalmine meant Adani could shelve its plans.”
The Guardian quotes Prof Will Steffen’s Climate Council report to say that a “carbon budget” approach to a global warming limit of 2C rules out Carmichael coalmine.
“As a catalyst for opening up neighbouring mines, it could lead to total emissions from Galilee basin coal matching ‘one of the top 15 emitting countries in the world’ and making up 130% of Australia’s total carbon pollution.”, the report adds.
Quoting from the report, the Guardian says, “The carbon budget for 2C allows for less than 10% of existing Australian coal reserves to be dug up, leaving ‘no basis for developing any potential new coalmines, no matter where they are or what size they are’. This takes into account the ‘most economical’ existing sources of coal worldwide.”
“There are two undeniable trends – an accelerating uptake of renewable energy and coal plant closures,” the report is further quoted as saying. “For Australia to fight these trends is economically, socially and environmentally unwise and counterproductive.”
Steffen said his key observation from the report was that rising impacts at “modest temperature rises” – such as bleaching of the Great Barrier Reef – along with more extreme events and warming of 1.1C-1.2C already “really put the pressure on getting out of fossil fuels probably faster than most people have thought”.
Coal, which gives out “a lot more CO2 per unit of energy” than oil or gas, comes out as “the biggest loser” under a carbon budget, Steffen said, adding, “Basically, the story is we can still burn over half the conventional oil reserves, less than half the conventional gas reserves, but very little of the coal reserves, because coal emits a lot more CO2 per unit of energy.”
“The real question is how fast can we phase out our existing mines and existing power stations before their normal lifetime is up. How do we hasten the transition? So any talk of opening up a vast new area of coal is completely out of whack with what we know about what’s happening with the climate systems”, he added.

Comments

TRENDING

Wave of disappearances sparks human rights fears for activists in Delhi

By Harsh Thakor*  A philosophy student from Zakir Hussain College, Delhi University, and an activist associated with Nazariya magazine, Rudra, has been reported missing since the morning of July 19, 2025. This disappearance adds to a growing concern among human rights advocates regarding the escalating number of detentions and disappearances of activists in Delhi.

How community leaders overcome obstacles to protect forests and pastures in remote villages

By Bharat Dogra  Dheera Ram Kapaya grew up in such poverty that, unable to attend school himself, he would carry another boy’s heavy school bag for five kilometers just to get a scoop of daliya (porridge). When he was finally able to attend school, he had to leave after class five to join other adolescent workers. However, as soon as opportunities arose, he involved himself in community efforts—promoting forest protection, adult literacy, and other constructive initiatives. His hidden talent for writing emerged during this time, and he became known for the songs and street play scripts he created to promote forest conservation, discourage child marriages, and support other social reforms.

‘Act of war on agriculture’: Aruna Rodrigues slams GM crop expansion and regulatory apathy

By Rosamma Thomas*  Expressing appreciation to the Union Agriculture Minister for inviting suggestions from farmers and concerned citizens on the sharp decline in cotton crop productivity, Aruna Rodrigues—lead petitioner in the Supreme Court case ongoing since 2005 that seeks a moratorium on genetically modified (GM) crops—wrote to Union Minister Shivraj Singh Chouhan on July 14, 2025, stating that conflicts of interest have infiltrated India’s regulatory system like a spreading cancer, including within the Indian Council for Agricultural Research (ICAR).

The GMO illusion: Three decades of hype, harm, and false hope

By Sridhar Radhakrishnan  Three decades of hype, billions of dollars spent, and still no miracle crop. It's time to abandon the GMO biotech fairy tale and return to the soil, the seed, and the farmer. “Trust us,” they said. “GMOs will feed the world.” Picture a world where there is plenty of food, no hunger, fields grow without chemical pesticides, children are saved from malnutrition, and people live healthily.

Sandra Gonzalez Sanabria: An inspiring life from Colombia’s Amazonian valley

By Vidya Bhushan Rawat*  In the village of Héctor Ramírez, known as Agua Bonita, in La Montañita, Caquetá, Colombia, a vision of peace and renewal is unfolding. In the pre-2016 period, this would have been nearly impossible for outsiders to visit, as it was the epicenter of violent resistance against state oppression. However, after the Peace Accord was signed between the Colombian government and former revolutionaries—marking the end of a 70-year insurgency that claimed over 400,000 lives until 2025, including civilians, rebel fighters, and security personnel—things began to change. Visiting Agua Bonita during the Global Land Forum in Bogotá revealed a village of hope and resilience. Former FARC revolutionaries have settled here and transformed the village into a center of peace and aspiration.

Overriding India's constitutional sovereignty? Citizens urge PM to reject WHO IHR amendments

By A Representative   A group of concerned Indian citizens, including medical professionals and activists, has sent an urgent appeal to Prime Minister Narendra Modi, urging him to reject proposed amendments to the International Health Regulations (IHR) before the ratification deadline of July 19, 2025. 

Indigenous Karen activist calls for global solidarity amid continued struggles in Burma

By A Representative   At the International Festival for People’s Rights and Struggles (IFPRS), Naw Paw Pree, an Indigenous Karen activist from the Karen Human Rights Group (KHRG), shared her experiences of oppression, resilience, and hope. Organized with the support of the International Indigenous Peoples Movement for Self-Determination and Liberation (IPMSDL), the event brought together Indigenous and marginalized communities from across the globe, offering a rare safe space for shared learning, solidarity, and expression.

Activists allege abduction and torture by Delhi Police Special Cell in missing person probe

By A Representative   A press statement released today by the Campaign Against State Repression (CASR) alleges that several student and social activists have been abducted, illegally detained, and subjected to torture by the Delhi Police Special Cell. The CASR claims these actions are linked to an investigation into the disappearance of Vallika Varshri, an editorial team member of 'Nazariya' magazine.

India’s zero-emission, eco-friendly energy strategies have a long way to go, despite impressive progress

By N.S. Venkataraman*   The recent report released by OPEC’s World Oil Outlook 2025 has predicted that by the year 2050, crude oil would replace coal as India’s key energy source. Clearly, OPEC expects that India’s dependence on fossil fuels for energy will continue to remain high in one form or another.