As part of the Galilee Basin Development Strategy report unveiled by Queensland Premier Campbell Newman at the Major Projects Conference in Brisbane, the state government aims to discount the royalty rate faced by projects in this undeveloped coal region over an “initial period”.
“My government is unashamedly all about growing the business of Queensland and we will do all we can to facilitate the projects proposed for the Galilee Basin,” Newman said.
Yet the $A6.4 billion China First coal project in the Galilee Basin, led by Palmer’s Waratah Coal with considerable Chinese backing, is not at the forefront of Newman’s mind, according to the recently elected member for the Sunshine Coast seat of Fairfax.
“Campbell Newman has had no interest in the China First project with his government giving favourable treatment and taxpayer funding to the Indian-backed GVK Hancock project,” Palmer said.
“GVK is the only group to receive government approval, yet they have no funding for their project and have now deserted the state and sacked employees.”
While a response from GVK is being sought, in the process ILN has discovered at least three people who are no longer working for GVK Hancock.
Palmer said the China First project was ignored despite it being underwritten with $10 billion in funding by Credit Suisse.
“Nothing is happening in Central Queensland, there is no infrastructure and the government needs to reconcile with all parties with projects proposed for the Galilee Basin,” Palmer said.
“The China First project has been awaiting government approval for five years. The state desperately needs the revenue from the project and the increase in services it will provide for schools, the health system, police and the independence of the judiciary.
“Newman needs to come back to Waratah Coal to get the China First project moving forward.”
Palmer’s opposition to Newman has been credited to a state government decision to not advance the China First project’s railway plans.
In his speech, Newman said the six different Galilee Basin railway proposals that progressed under the previous Labor government were unacceptable and would have resulted in more impact on landholders and the environment.
The state’s new strategy to incentivise Galilee Basin projects also includes offering access to the T2 site at the Abbot Point port.
Other big coal projects in the region include AMCI and Bandanna Energy’s South Galilee project, Vale’s Degulla project, which was reportedly on the market mid-year, and Indian conglomerate Adani’s Carmichael project.
Green reaction
While Palmer is claiming he was ignored by the Newman government, the Australian Greens singled him out in response to the proposed Galilee Basin incentives.
“People like Clive Palmer don't need any help making even more money, especially when their mega profits go to buying political power, as a federal parliamentary inquiry is now set to investigate,” Senator Larissa Waters said.
"Even though global coal demand is dropping, the Newman Government is determined to exacerbate climate change, threaten groundwater and industrialise the Great Barrier Reef, by propping up coal as the rest of the world moves on.
"Three of the Galilee Basin mega mines, owned by Clive Palmer, Gina Rinehart and an Indian conglomerate, are set to create more CO2 emissions a year than produced annually by both Denmark and Portugal combined.”
She claimed that a massive Abbot Point expansion will create masses of coal exports through the Great Barrier Reef, “turning it into a shipping super highway for the big mining companies”
"The port expansion proposal would see three million cubic metres of dredge spoil dumped into the Reef's World Heritage waters, putting even more pressure on our struggling Reef.”
