The Asia Miner

JAN-MAR 2016

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Volume 13 • Issue 1 | 2016 | ASIA Miner | 35 Australia Coal AFTER passing another hurdle in October with Federal Environment Minister Greg Hunt approving it with the 'strictest condi- tions in Australian history', Adani's $16 bil- lion Carmichael Coal Project in Queensland faces further challenges. The project will annually produce up to 60 million tonnes of coal for export but has faced staunch oppo- sition because its port terminals are close to the Great Barrier Reef. The coal, railway and port project includes building Australia's largest thermal coal mine in the north Galilee Basin approximately 160km northwest of Clermont in Central Queensland, linked by a new 388km stan- dard gauge rail line to a new terminal at Ab- bot Point. Adani breathed a sigh of relief when the Minister granted approval after the Feder- al Court in August set aside the previous approval. However, the six-year approv- als process was again extended after the Australian Conservation Foundation (ACF) subsequently launched more action. It has lodged papers in the Federal Court arguing that the Minister failed to consid- er whether the impact of burning coal and climate pollution would be inconsistent with Australia's international obligations to pro- tect the Great Barrier Reef. A spokesperson for Adani said the an- nouncement by the ACF was "the latest in a litany of attempts by politically motivated activists seeking to endlessly delay new job-creating projects in Queensland". Adani has consistently said what is re- quired for major job-creating resource projects to proceed in Queensland, and in Australia more broadly, is regulatory and ap- provals certainty," the spokesperson said. "It is one thing for a project's approval to be challenged - it is quite another to wait for previous challenges to fail, then launch new ones on different grounds over and over again, seeking endless delay, and endlessly abusing process. "It is worth restating that the proposed mine has been approved, and subsequent- ly re-approved, with the strictest conditions ever handed down under the EPBC Act." The Queensland Resources Council (QRC) said another legal challenge could delay the proposed mine by a year. QRC CEO Michael Roche said, "Arguing that Australian coal mines are responsible for the use of our coal in customer countries would be like saying Saudi Arabia should be responsible for emissions from Australian motorists using Saudi Arabian petroleum. "There is simply no end to the oppor- tunities in our legal system for activists to use the federal and Queensland court sys- tems. My challenge to politicians is: when is enough, enough?" THE New South Wales Planning Assessment Commission (PAC) has recommended that Anglo American's Drayton South Coal Mine proposal should not proceed, stating that it had balanced the eco- nomic, social and environmental factors and identifed a real risk to the thoroughbred horse breeding industry and to diversity within the Hunter Valley economy. The PAC said this risk was considered to limit capacity to provide long-term economic growth to local communities, the region and the State. It noted there were a signifcant number of viable open cut mining operations in the Hunter Valley that it had approved, and more still to come that were approvable. "While the commission recommends that the proposal does not proceed, it notes that Anglo American has sought limited additional mining within the existing Drayton pits and is satisfed this is accept- able and approvable, subject to conditions." Anglo American Coal CEO Seamus French said, "This is the worst possible outcome for our workers, the Hunter Valley community and NSW. Unemployment in the Hunter Valley is at 8% and to reject a project that would have continued to support this region for another 15 years, providing local people and their families with security, is incomprehensible. "The PAC has ignored the detailed scientifc assessments and peer-reviewed reports contained in the project's Environmental Im- pact Statement, NSW Government policy and the expert advice of 13 government agencies. "Anglo American has worked tirelessly on this project since 2009, spent more than $70 million in studies and application fees, con- sulted widely and refned our proposal to accommodate legitimate concerns. This included reducing the project footprint by more than 25% and ensuring all mining operations remain behind the second ridgeline nominated by the previous PAC in 2013. "Only one side has been willing to compromise and we have worked within a planning system that has allowed these concessions and sci- entifc facts to be ignored, despite overwhelming public support." The PAC stated that it had considered the potential impacts of the open cut mine on neighbouring horse studs. "Notwithstanding the con- cessions agreed to by Anglo American, the proposal is to undertake open cut mining to within 1km of two of Australia's most important thor- oughbred breeding studs. The commission found that at this proximity the mine poses risks to the reputation and, to a lesser extent, opera- tions of the studs. The mining and thoroughbred land uses are vastly different and are not compatible in close proximity." Drayton South mine is refused Adani's proposed Carmichael coal project is in the Galilee Basin and will be linked to new port facilities at Abbot Point by a new 388km rail line. Carmichael project faces more hurdles

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