Mining giant BHP Billiton (ASX: BHP) will no longer be a part of the expansion of the Abbot Point coal terminal project after it announced on Monday its withdrawal of a $3-billion port proposal.

By funding the 12 terminal project, BHP would have access to 30 million tonnes of coal-loading capacity annually and created 750 jobs, 500 of which would be the construction phase of the terminal.

Prior to the construction of the terminal projects, federal Environment Minister Greg Hunt would need to issued an approval for the application by the state-owned North Queensland Bulk Ports to dredge 3 million tonnes of material. Mr Hunt delayed making a decision on North Queensland's application to mid-December.

Green groups, however, are opposed to the dredging because of its possible impact on the health of the Great Barrier Reef, a UNESCO World Heritage site.

YouTube/GreenpeaceAustralia

Queensland Deputy Premier Jeff Seeney said the withdrawal by BHP from the Abbot Point development would not affect the project since it would open the way for another Australian mining company to provide funds for the port development.

Another major miner, Rio Tinto (ASX: RIO) backed out from the controversial Abbot Point terminal project in April 2013.

BHP justified its withdrawal to being three-quarters of its $1.5-billion expansion of the Hay Point coal terminal, located south of Mackay. BHP believes the new terminal is sufficient to cover its requirements.

Still part of the Abbot Point port development project are Adani, an Indian company, and GVK, which are developing coal mines in the Galilee Basin.

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