Adani bought Carmichael Australia coal mine royalty rights from Linc Energy
Adani Enterprises on 29 August 2014 agreed to pay 145 million US dollar to Linc Energy to buy the royalty rights.
Adani Enterprises on 29 August 2014 agreed to pay 145 million US dollar to Singapore-listed Linc Energy to buy the royalty rights of the Australian firm Carmichael coal project.
The royalty will cost Adani Enterprises 2 Australian dollar per tonne, indexed to inflation, for the first 20 years of production from the coal mine.
Australian government had cleared the proposed Carmichael coal mine project of the Indian conglomerate Adani in the Galilee Basin in central Queensland in July 2014.
The deal was already four years behind schedule. Adani bought Carmichael from Linc Energy amid a coal boom in 2010. In 2010, Adani had paid 500 million Australian dollar in cash and agreed to pay the royalty stream.
Adani in 2010 aimed to open the mine by 2014 and at the time Linc said it could earn more than 3 billion Australian dollar in revenue over the life of the royalty stream.
The agreement is a win-win deal for both Adani and Linc. The Indian firm Adani got rid of a liability on the project, while Linc secures cash up front from a mine that may not be built for many years.