The $16 billion Adani coal mining project is back on track after the Indian resources giant agreed to a royalties deal with the Queensland government.
It comes a week after Premier Annastacia Palaszczuk reportedly backflipped on a deal because of divisions inside her government, which lead to a snap cabinet meeting on Friday.
Ministers unanimously agreed the company would not be given a royalties holiday on its proposed operation, and on Tuesday evening Adani announced it had agreed to the deal.
A week of warring among Labor factions was sparked when details of Ms Palaszczuk’s original agreement with the company surfaced.
Under that deal, Adani would have had pay only $2 million a year over the first seven years of the mine’s operation, which could have cost Queensland taxpayers up to $320 million.
No details of the new deal were available due to commercial reasons, an Adani spokesman told AAP on Tuesday evening.
“The royalties arrangement means the project is back on track to generate 10,000 direct and indirect jobs in regional Queensland,” the company said in a statement.
“This shows a strong commitment by the state government to the project and is a benchmark decision to take this project forward.”
The board of Adani’s parent company will consider the deal at its next meeting, the statement said.
On Saturday, Ms Palaszczuk said her government had worked “night and day” to finalise the new framework, but denied she had backflipped on a previous deal she had struck with the firm.
Further comment has been sought from the government.