Great Barrier Reef Concerns: Australia Back Tracks on $6.4B Coal Mine Project of Rinehart, India GVK Power
With mounting concerns on the environmental preservation of the Great Barrier Reef that now includes the UNESCO, the federal government had halted the final approval of the coal mine project initiated by Gina Rinehart's Hancock Coal and India's GVK.
"I am stopping the clock on the process which has been given to us by the Queensland government," Tony Burke, Australia's federal minister for sustainability and environment, said, in a report furnished by his office. He said he's seeking further information.
Exactly last week, the state government of Queensland gave its conditional stamp of approval to the development of the Alpha Coal Project in Queensland State. The project is expected to generate around 30 million metric tonnes of thermal coal annually over its 30-year mine life.
The said project was even given the green light to hire not less than 1,000 foreign skilled workers to get it off the ground. Nevertheless, these had all now been shelved at the moment.
As part of the regulatory process, the federal government needs to approve the ruling by the Queensland state authorities in 30 days.
"We have no interest in a slow process and slow time lines but we are not willing to compromise environmental standards," Mr Burke said.
Unfortunately, however, the Alpha Coal Project "will run against a primary environmental asset known as the Great Barrier Reef."
Mr Burke stressed he is delaying approval of the joint coal mine project of Ms Rinehart with India's GVK Power & Infrastructure pending until he has ample information concerning its possible impact to the Great Barrier Reef and its immediate environment.
"I intend making a decision as soon as an informed decision can be made," he said.
The approval process could take up to 18 months before a decision is released, The Sydney Morning Herald reported, effectively disturbing the timeline of the project.
But depending on the progress of approvals, Mr Burke said a decision could still be issued before the company's planned final investment decision which is expected later this year.
Mr Burke also pointed out he will not have second doubts suspending the bilateral agreement with Queensland if authorities failed to show him enough reason to support the coal mine project. The Alpha Coal Project is touted to become the first coal mine in the Galilee Basin.
"I'm not prepared in the name of cooperation to abandon environmental protection," Mr Burke said. "In terms of the company, it is a significant inconvenience."
The United National Educational, Scientific and Cultural Organisation (UNESCO) on Saturday threatened to include the Great Barrier Reef among the World Heritage sites that is ''in danger'' unless Australia works to improve its conservation as well as institute substantial changes to its supervision of the area by February.