Indian conglomerate Adani will pay no company tax this financial year despite reporting almost $1bn in revenue from coal mining in Queensland. The accounts for its Carmichael thermal coal project show that large costs, including production and related-party logistics expenses, were used to offset the $963.5m revenue in the 12 months to 31 March, resulting in a $340.6m loss and erasing its tax bill.
An analysis of company accounts by Guardian Australia shows the mining project has never paid corporate tax since it opened in 2021, despite past pledges by Adani that the operations would channel billions of dollars in taxes and royalties into the economy.
Royalty payments
Adani Mining’s accounts show it paid $58m in royalties during the 12-month period. Royalties are payments made to governments for extracting state-owned minerals. A separate $33.1m royalty was paid to a related party.
Tim Buckley, director of Climate Energy Finance, said the company was structured so that it wouldn’t pay corporate tax in Australia. “This is a perfect example of why Australia needs new rules that ensure foreign entities have a sensible capital structure,” he said.
Controversial project
The project in Queensland’s Galilee Basin was fiercely contested, opening a new jurisdiction for thermal coal extraction and raising environmental concerns.
Industry groups supporting the conglomerate had claimed the project would fund schools, hospitals and other infrastructure for “almost a century” through mining taxes and royalties.
A spokesperson for Adani Mining said the project provided direct jobs for more than 1,400 Queenslanders last financial year. “We comply fully with our state and commonwealth taxation and royalty obligations and our statutory profit and tax outcomes are determined in accordance with Australian accounting standards and the corporations act,” the spokesperson said.
Coal prices and port business
The Carmichael operations opened during a prosperous time for coal miners. Russia’s invasion of Ukraine sent global energy prices soaring in 2022, and coal prices are now also being supported by energy supply constraints caused by conflict in the Middle East.
The Adani-controlled Abbot Point port business, named North Queensland Export Terminal, also paid no company tax over the most recent 12-month reporting period, despite earning $356.6m. Various operating expenses led to a $6.8m loss, with no tax payable.
The terminal business’s chief executive, Mark Smith, said accounts were prepared in accordance with Australian accounting standards and reflect the capital-intensive nature of owning and operating major export infrastructure. “The terminal plays an important role in supporting Queensland trade and we remain focused on delivering safe, reliable, and efficient export services for our customers,” Smith said.
