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Australian mega-mine approved

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Carmichael is estimated to contain 11 billion tonnes of thermal coal



A controversial coal mine and rail project in Queensland, Australia, has moved closer to completion after the government approved three mining leases worth $16.5 billion.

The Carmichael site is estimated to contain 11 billion tonnes of thermal coal. The project, which is being run by Indian firm Adani, will involve the development of infrastructure such as a railway, haul roads, workshops, power lines and pipelines.

The mine will be able to produce 60 million tonnes of thermal coal a year for export to India. The company expects to generate around 10,000 jobs through its construction and during its operation.

The Queensland government said the coal, rail and port project now had 19 permits and approvals at local, state and federal level.  However construction work is pending secondary approvals for rail, port facilities, power, water, road works and the airport.

The news comes amid protests that taxpayers will bear the brunt of funding the project, following a report by the Queensland Resources Council which found that a third of the state’s coal mines run at a loss and more than half of the mines producing thermal coal for power stations are losing money, while the industry is funded with millions in government subsidies. The mine has also angered environmentalists because of the threat coal mining poses to the delicate ecosystem of the Great Barrier reef. 

Dr Anthony Lynham, minister for state development and minister for Natural Resources and Mines, said: “There will be no dredging at Abbot Point until Adani demonstrates financial closure and Queensland taxpayers will not fund infrastructure for the project. The mine’s environmental authority had about 140 conditions to protect local flora and fauna, groundwater and surface water resources, as well as controls on dust and noise”.

Queensland premier, Annastacia Palaszczuk, said: “Stringent conditions will continue to protect the environment, landholders’ and traditional owners’ interests, and our iconic Great Barrier Reef.”

Environmental group the Australian Conservation Foundation (ACF), branded the move as "irresponsible".  Kelly O’Shanassy, chief executive of the ACF, said: "By granting a licence for this massive coal mine the Palaszczuk government is bowing to the demands of big polluters, not listening to the needs of the people.

"It is grossly irresponsible of the Palaszczuk government to issue the paperwork for the Carmichael coal mine, which will create millions of tonnes of climate pollution for many decades to come, when we can see the Great Barrier Reef is already being savaged by climate change."

Legal proceedings launched by the ACF to challenge the Federal Environment Minister Greg Hunt’s approval of the project in October 2015 will be heard in the Federal Court in May.

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