Queensland Govt okays Adani's $21.7 billion coal project

The Dollar Business Bureau

Australia’s Queensland Government has approved three mining leases for Adani’s $21.7 billion Carmichael coal mine and rail project in the Galilee Basin in Australia, a decision which has attracted significant protests from the country’s several environmental bodies.

On Sunday, the State Mines Minister Anthony Lynham and the Premier Annastacia Palaszczuk made the major announcement, with the latter terming the project as a major step forward amid extensive government and community scrutiny.

“This is a major step forward for this project after extensive government and community scrutiny. Some approvals are still required before construction can start, and ultimately committing to the project will be a decision for Adani,” Palaszczuk said in her statement.

Adani’s project, which is going to be the largest rail and port project in the Galilee basin and at Abbot Point, had been on hold as the Palaszczuk Government as well as the environmental bodies feared that the project would injure the Great Barrier Reef.

The premier, in her recent announcement, said that stringent controls would protect the Great Barrier Reef and the environment, in addition to the interests of landholders and traditional owners.

The three leases, that cover an area estimated to contain approximately 11 billion tonnes of thermal coal, is about 160km north-west of Clermont.

Palaszczuk said that the project was equally important for the Australian government as it would generate jobs and bring development in the region.

“However, I know the people of north and central Queensland will welcome this latest progress for the potential jobs and economic development it brings closer for their communities,” she said.

Adani had earlier estimated that the mine, rail and port project will generate over 5,000 jobs at the peak of construction and over 4,500 jobs at the peak of operations.

Expressing his pleasure, Adani Group founder and Chairman Gautam Adani said, “Today is an important milestone in our company’s plan to build a long-term future with Queensland, and Australia. This final key approval reflects the confidence of both sides of politics, at the national and state level.”

Adani, however, said the company would make a final investment decision after it has secured outstanding approvals and resolved legal challenges.

"Successive legal challenges to science-based approvals - which are the strictest of their kind for a major resources project in this country - are designed to deny the job-creating benefits of the company's mine, rail and port projects to our state," the company said in a statement.

"(The) conclusion of second-tier approvals and resolution of politically-motivated legal challenges is the company's principal focus, prior to a final investment decision being made," it said.

Several environmental groups had earlier said the mine would increase global warming and threats to the world heritage Great Barrier Reef.

On Monday, protesters including those from Australia’s Greenpeace and GetUp supporters once again raised their voice and gathered outside Queensland's parliament to protest against the approval of Adani projects, with some of them even calling the decision "economic stupidity" and "environmental insanity".