Adani Accused of Selling Coal Below Market Rates, Costing Queensland Millions

According to recent analysis, Adani has been selling thermal coal from its Carmichael mine in Queensland at prices far below the expected market rates over the past three years. The research director at The Australia Institute, Rod Campbell, calculated that Adani sold coal at an average of just over $100 per tonne during the 2023 to 2025 financial years, its first three full years of operation.

This was a significant discount compared to the huge coal price spikes seen during that period, with Australian benchmark prices surging above $600 per tonne in late 2022 before moderating. Even accounting for Carmichael's lower quality coal, the difference between Adani's "realized price and expected market price is huge", according to Campbell.

This discrepancy has raised concerns that Adani's royalty payments to the Queensland government were "far lower than might have been expected". The Australia Institute analysis suggests Adani would have potentially owed $625 million in royalties over the 2023-25 period if its customer prices were closer to market rates, given the progressive royalty system. Instead, Adani paid just under $230 million in royalties during that time.

Adani has strongly rejected the findings, claiming the analysis is based on "mismatched data, incorrect assumptions and back-of-a-napkin math". However, experts argue the modelling appears to be as "accurate as possible" for an external party, and the Queensland and federal governments should investigate the matter further.