Exclusive: slimmed-down Carmichael plan calls into question eligibility to delay royalties payment

The Adani mining company has still not signed a royalties agreement with the Queensland government, despite its claims to be just weeks away from green-lighting the Carmichael mine.

This week, Adani’s Australian mining head, Lucas Dow, gave a series of interviews claiming the company was close to financing a slimmed-down, $2bn integrated Carmichael mine, rail and port proposal.

Analysts say the strategy is to get the mine into production while spending as little upfront cash as possible. Guardian Australia understands it relies heavily on vendor financing agreements, in which payments to contractors and suppliers are effectively withheld for several years.

Adani now insists it can start Carmichael for a fraction of the investment previously required. But Queensland government sources say the slimmed-down plan calls into question Adani’s eligibility to delay payment of royalties.

Related: Adani given extra year to pay for water licence due to ‘project delays’

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