A potential 'royalties holiday' for Adani is off the table, after Deputy Premier Jackie Trad ruled it out.
There will be no "royalties holiday" for Indian mining giant Adani, Queensland's deputy premier says.
Jackie Trad has hosed down suggestions Adani was offered lower royalties to get its multi-billion dollar Carmichael coal mine in the Galilee Basin off the ground.
Talk of such a deal is believed to have caused major divisions in the state Labor cabinet, with the Left faction raising serious concerns.
Deputy Premier Jackie Trad, a member of the Left, told reporters on Monday any such deal would break an election promise.
"We've got a pre-election commitment in relation to any subsidisation of Adani, and we made that commitment very clearly at the last state election, that there would be no royalty holiday or subsidisation of taxpayer funds for Adani," she said.
"Having said that, I am part of a government that has made sure all of Adani's statutory licensing arrangements have been pursued, so that the mine can get on and open, and employ people."
Under the mooted deal, Adani could have paid as little as $2 million a year in royalties for the first seven years, before slowly increasing to the full amount.
The estimated shortfall in royalties in the short term was around $350 million.
State cabinet is due to discuss the mine when it meets on Monday.
Opposition frontbencher Scott Emerson said it was clear the government was divided over the issue.
"What we are seeing here is a factional battle between the left and the right, between Trad and (Premier Annastacia) Palaszczuk, and the real losers here are the Queensland families relying on this project." Mr Emerson told reporters on Monday.
"We strongly support this project ... but this is a government that is bitterly divided over this project, and we'll know this afternoon who is running the state."
The Adani mine project, which is worth about $16 billion and is expected to create hundreds of jobs, has been fiercely opposed by environmental groups.