The Palaszczuk Government is on the backfoot in Parliament, as Opposition MPs line up to attack its indecision on whether to offer Indian miner Adani a royalty holiday.

The mining giant has decided to put on hold its final decision on the central Queensland project until it gets "clarity" over lower or deferred royalties.

It is the first parliamentary sitting since the ABC broke news last week that it could be offered a $320 million royalty break in its early time of operation.

Loading

It is believed the issue has divided the left and right factions of Cabinet, and it is a rift LNP Leader Tim Nicholls eagerly exposed.

"A toxic brew of self interest and division, concocted by the Deputy Premier [Jackie Trad] and her kitchen cabinet of the loony left, is conspiring to kill off the Adani Carmichael mine," he told Parliament.

Opposition MP Jarrod Bleijie also took a shot at Ms Trad, claiming she was afraid of losing the Green vote in her South Brisbane electorate.

"Can the Premier tell the House why she is putting the Member for South Brisbane's job ahead of the jobs of thousands of regional Queenslanders?" Mr Bleijie asked.

Ms Trad stopped short of declaring her personal support, but again said she was part of a government that backed the jobs to come from the Adani project.

She insisted a royalty framework for Adani and other mining firms would go through state Cabinet.

"The Premier has been strong and clear: this will go through a Cabinet process and there will be a framework going forward," she said.

"We made commitments. We will not do secret deals and we will not hand over taxpayer funds to build the infrastructure that Adani wants."

Premier Annastacia Palaszczuk said the ultimate decision was not just about Adani, but a sector-wide royalties scheme for the Galilee Basin, the Surat Basin and the North West Minerals Province.

"Cabinet is going to consider a proposal to open up three huge basins in Queensland to generate jobs," she said.

The issue boiled over into the community this morning, where a protest was held at a train station at Tennyson, in Brisbane's south.

Premier Annastacia Palaszczuk with Adani executives at the Port of Townsville last year. ( ABC News: Leonie Mellor )

Activists brought a coal-laden train to a halt and slung a protest banner across it.

Two people locked themselves to the carriage, but were cut free before 11:00am and charged with public nuisance.

North may lose needed jobs

Adani has previously said the proposed mine would create thousands of local jobs, and it was expected to produce 25 million tonnes of coal per year during its first phase.

The Townsville Chamber of Commerce said it must accept the possibility the $21 billion project may fall over for the city, which has been named as Adani's headquarters for the development.

The proposed mine will be the largest in Australia if it goes ahead. ( ABC News )

President Troy Popham said time was running out for authorities to secure a deal.

"You know Australia's not its only opportunity and its only market," he said.

"Time is of the essence, let's see if this impasse can be fixed."

Townsville Mayor Jenny Hill said the language of "royalty waiver" needed to end.

"It's about setting up a scale about when the royalties are paid," she said.

"Doesn't mean we won't get them … it's that language when people are using 'royalty waiver' that's upsetting the [north Queensland] community when that's not the case."

Mackay Mayor Greg Williamson said it was unacceptable Adani's postponement was based on "the intransigence" within Cabinet.

"We have come to the point where we just need a decision," he said.

"We're quite sick of the ducks and drakes on both sides.

"For the sake of Queensland families looking for jobs ... we need a decision."

Adani's coal would be exported through the Abbot Point coal terminal in north Queensland.

Rockhampton-based LNP Senator Matt Canavan said the State Government needed to spell out what promises it made to Adani.

"I've heard from others who were on the trip to India that Ms Palaszczuk made promises to Adani about this in India when Margaret Strelow and Jenny Hill was over there," Mr Canavan said.

"She needs to come clean with the Queensland people about exactly what she promised because she can't be saying one thing in India and a different thing in Brisbane."

The former Newman government granted the mine preliminary approval in May 2014, before it received federal backing five months later.

Over the last two years, the project has slowly stepped through the approval process for the mine and associated railway line to transport coal in the Galilee Basin to the Abbot Point port.