Adani Australia has announced that it has indefinitely postponed final investment decision on Carmichael coal mine after Queensland Premier failed to gain cabinet support on the 'low' royalty agreement.
Queensland Premier Annastacia Palasczuk has come under pressure from all sides as the state government struggles to reach a position on a proposed royalty holiday for Adani's mega coal mine, AAP reports.
The federal government, regional mayors and Adani itself have all piled on the pressure after state cabinet failed to make a decision on the controversial proposal - which would see the Indian energy giant pay $2 million in royalties in the early years of the mine's operation.
Ms Palaszczuk is also facing intense opposition from within her own party, with the majority of cabinet said to oppose the deal, while the Greens and One Nation have also called on the government to reject it.
It's understood Ms Palaszczuk struck the agreement during a meeting with Gautam Adani in India in March without securing Cabinet support.
The move has been heavily opposed by the dominant Left faction, led by Deputy Premier Jackie Trad, which argues it contravenes the party's promise not to provide taxpayer subsidies for Adani.
Adani on Monday responded to the lack of decision by announcing it would postpone a financial investment decision on the mine indefinitely.
However, the ABC has reported the government is working on a "royalties framework" following a meeting between Ms Trad and Treasurer Curtis Pitt overnight, and Ms Palaszcuk could announce the move when parliament resumes on Tuesday.
Federal Resources Minister Matt Canavan said the state government's indecision was putting thousands of jobs at risk. "It's a remarkable and embarrassing situation for Queensland that they don't even have a tax regime in place," Senator Canavan told ABC radio.
Meanwhile, Townsville Mayor Jenny Hill says if the Adani project doesn't go ahead, it will set the state back 50 years. "If some people who live in coffee-sipping inner-Brisbane think they are going to destroy the rest of Queensland, they have a huge fight on their hands," she told the Townsville Bulletin.
Opposition Leader Tim Nicholls says the government is consumed by a "bitter internal warfare" and had left Adani's "huge investment" waiting at the altar. "This is a bitter blow for the people of regional Queensland," he told ABC Radio.
The Greens, meanwhile, have accused Adani of attempting to bully the government.
"Malcolm Turnbull and Queensland Labor need to stand up to these bullies, veto the $1 billion handout, say no to giving them freebies at the taxpayers' expense and abandon their support for this mega-mine," Queensland Senator Larissa Waters said.
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