Australian mining tycoon Clive Palmer has said the government’s cancellation of his company’s proposal to build a coal mine in central Queensland will be a blow to the region’s economy.
Federal Environment Minister Tanya Plibersek on Feb. 9 announced she had decided to reject Palmer’s proposed mine, the Central Queensland Coal Project, in the Styx Coal Basin, to be located 130 kilometres northwest of Rockhampton and about 10 kilometres from the Great Barrier Reef Marine Park but 170 kilometres from the iconic outer reef, over potential risks to the environment despite proposed management efforts.
This is the first time a coal project has been refused in two decades, citing national environmental laws in Australia.
According to a submission to the government by Palmer’s company Waratah Coal, the opencast mine would operate for 20 years, mining both coking coals used for steelmaking and thermal coal used for electricity.
The mine, which would hire from 100 to 500 employees, is estimated to have an export value of A$60 billion (US$41.48 billion) and provide A$32 billion (US$22.12 billion) in state and federal royalties over its lifetime.
The company said that by comparison, the Great Barrier Reef contributes A$6.4 billion (US$4.42 billion) per year to the economy, meaning “per hectare” the reef would be valued at $1,858 while the mine would generate $1.6 million.
Economic Concerns
Speaking at a media conference in the Gold Coast on Friday, Palmer argued that the refusal of the mine will affect the local community’s standard of living, especially at a time when some families are struggling to put food on the table.“We’ve got men and women depending on their jobs and livelihoods, and we had to do what we could to help it,” he said.
“We have to have a lot of compassion for the people and the families of the coal fields.
“What’s going to happen to our country? What’s going to happen to the economy?” he added.
He said his project had already taken measures to limit environmental risks into consideration and further alleged that the decision by the centre-left Labor government was about doing deals with the Greens to get legislation through federal parliament.
“The Labor party says one thing—that they support coal—and they do things like this.”
The billionaire argued his company “certainly dealt with all the minister’s worries” but “haven’t been given a fair go before the minister.”
“There will be action taken, I can’t really talk about it,” he said.
Plibersek Cites Environmental Grounds
In a 71-page statement of reason explaining the decision for cancellation, Plibersek said the mine would pose “unacceptable” environmental risks to the Great Barrier Reef.For example, there is potential the mine’s water would pose a risk to estuarine and near-shore ecosystems, and release increased sediment into the Great Barrier Reef.
(Philip Schubert/Adobe Stock)
The environment minister also noted that the mine’s use of groundwater would reduce base flow in nearby freshwater creeks and lead to the “dieback and loss of up to 165 hectares of groundwater-dependent vegetation.”
She also warned about “changes to surface water quality from controlled and uncontrolled discharges, with the potential to impact aquatic environments within, adjacent to, and downstream of the proposed action site.” In addition, the mine would cause “disturbance of sonic soils, which are prone to erosion, potentially increasing sediment loads in local waterways,” she said.
When announcing the decision on Wednesday, Plibersek said: “I have decided not to approve the Central Queensland Coal Project because the risks to the Great Barrier Reef, freshwater creeks, and groundwater are too great.”
“I’ll make a decision on a case-by-case basis on every project that comes before me,” she said.
“The Greens and others are saying that we should just refuse every application for a coal mine or gas project. That’s absolutely not what I’m doing here.
Plibersek added: “Protecting the Great Barrier Reef is not just important environmentally, it’s also important economically.”
Scientist Argues Reef Not At Risk
But Queensland-based physicist Peter Ridd said that while the coal mine may damage the environment surrounding it, “there’s no possibility” that it would damage the Great Barrier Reef, which is over 100 kilometres off the coast.He said the Great Barrier Reef is located near a part of the ocean called Broad Sound, which has an “incredibly muddy estuary,” so while there will be some coal dust coming off Palmer’s mine, coal is “not exactly a hyper-poisonous substance” compared to the sediments in the water.
“It’s not plutonium or cyanide or something,” he told TNT Radio on Feb. 9.
“And compared to the amount of mud that’s floating around in Broad sound, you'll be flat out even measuring at the time that little bit of coal dust.”
He argued there’s a “political overtone” in the rejection of the coal mine because the state and federal government has been approving coal projects “left right centre in the last couple of years.” The government is also not stopping the “enormous” Hay Point coal terminal in North Queensland, which is located right on the coast.
“It’s extremely inconsistent what they’re doing here,” he noted.
“I think the fact that it’s Clive Palmer who had a previous political career and who has made a lot of enemies.”
