The project, which is subject to an extensive set of environmental and social conditions and must still obtain federal government approval, is a show of faith in the future of the Galilee Basin, which has been criticised in some commentaries as being sub-economic for coal.
Queensland Deputy Premier Jeff Seeney said that should the mine proceed, it would play a vital role in opening up the Galilee Basin.
“This project has the potential to be the largest coal mine in Australia and one of the largest in the world,” Seeney said.
“Our government identified resources as one of the four key pillars of the state’s economy and promised at the election to grow the sector for the benefit of all Queenslanders.
“Projects that have languished for years in approvals are now being efficiently, yet rigorously assessed, signalling that Queensland is open for business.”
The Carmichael coal mine and rail project had the potential to create up to 2500 construction and 3900 operational jobs.
It is expected to generate over $500 million annually in direct and indirect benefits to Queensland’s economy during construction, and $3 billion at full export capacity.
All coal will be railed via a privately owned 189km rail line connecting to the existing Aurizon rail infrastructure near Moranbah, and shipped through coal terminal facilities at the Port of Abbot Point and the Port of Hay Point.
Export coal from this project will predominantly service the Indian market.
With a total forecast investment of $28.4 billion, the Galilee is expected to be capable of supplying more than 120Mtpa – even as high as 200Mtpa – of thermal coal into the market for the next few decades.
But Institute for Energy Economics and Financial Analysis Australasia energy finance studies director Tim Buckley said assumptions about ongoing demand for low grade thermal coal from India were inaccurate.
“The financial justification for Galilee Basin coal is based on flawed economic assumptions, including a reliance on the increasingly uncertain prospect of India being able to continue to finance and economically justify building imported coal-fired power stations,” he reportedly told The Australian.
Seeney said the Coordinator-General had set stringent and wide-ranging conditions to protect landholders, local flora, groundwater resources, surface water and air quality as well as controls on dust and noise.
“The 600-page Coordinator-General’s report sets 190 conditions for proponent Adani to meet during the construction and operational phase of the project,” he said.
“In relation to groundwater and water bores, Adani will be required to reach make-good agreements with all affected landholders including the identification and provision of alternative water supplies.
“Adani will also be required to contribute water monitoring data and funding to a Galilee region water resource model.”
The Queensland Coordinator-General’s report now goes to the Commonwealth Environment minister for a decision on issues pertaining to the federal Environmental Protection and Biodiversity Conservation Act under the assessment bilateral agreement.
Jeyakumar Janakaraj was appointed as Adani’s Australian CEO in September, as the Carmichael project moved closer to the execution stage.
