Queensland cabinet has decided not to grant a royalty holiday for the Adani Carmichael mine.

It comes after ongoing reports of tension between the Left and Right factions in the Palaszczuk cabinet over royalties for the Adani mine.

Queensland Premier Annastacia Palaszczuk says there will be no royalty holiday for the Adani Carmichael mine. Credit:Tertius Pickard

Adani released a statement on Friday evening following news of the unanimous decision.

"Adani Australia will give urgent consideration of state cabinet's decision tonight on a royalties arrangement for the $16.5 billion Carmichael coal mine project."