Queensland backs coal port expansion

Indian conglomerates Adani Enterprises and GVK have reached an agreement with Australia’s newly elected government to expand the port of Abbot Point to further their coal mining projects in the untapped Galilee Basin. Adani plans to start financing its $16.5bn development of the country’s largest thermal coal mine, while GVK will go ahead with its $6bn Alpha mine. The announcement to support the projects came as a surprise as the new Labour government was believed to be less supportive of the coal industry than their conservative predecessors.

Green campaigners fear that both projects would create more pollution

Speaking to Reuters, Minister for State Development, Anthony Lynham, said: “We’re no fools. We realise that jobs have to come from economic development, and economic development in this state has a lot to do with mining. So we encourage mining, especially in the Galilee Basin, because we know that if the area is opened up, others will follow.”

Green campaigners fear that both projects would create more pollution and further damage the Great Barrier Reef, which is rapidly deteriorating. The expansion originally involved dumping 3 million cubic metres of dredged soil into the sea, 25km from Australia’s famous natural landmark. Amid concerns that UNESCO’s World Heritage Committee may label the reef as ‘in danger’, the state government moved to ban dredge dumping within the Great Barrier Reef Marine Park instead approving plans to dump the soil at the port itself.

While the Queensland state government has lent its support to the projects it will not offer any funding. Adani is expected to reach a final decision this year but with global coal prices crashing, environmental protests and the refusal by banks, including Goldman Sachs, Deutsche Bank and Morgan Stanley, to finance Galilee Basin projects, funding for the projects remain uncertain.