GVK Hancock Coal managing director Paul Mulder reportedly told The Australian newspaper that construction would not begin this year as originally planned, which would slow the development of the Galilee Basin.

“At the moment, the mining lease is being objected to by the Environmental Defender’s Office, which is pretty bizarre because it's partially funded by the federal government,” Mulder told The Australian.

“We obviously need to finalise that process and at the same time need to finalise the construction contacts. Those construction contracts are the key things because then the banks get involved.”

Meanwhile, Adani Group’s Galilee Transmission (GTC) is pushing ahead with its proposal for a major transmission line to power the development of Carmichael coal mine.

The 250km transmission line would link Powerlink Queensland’s Strathmore substation near Collinsville to the new Galilee substation to be located on Adani’s Moray Downs, 10km east of the proposed Carmichael mine.

Deputy Premier Jeff Seeney, who met with Adani executives in India this week, said the proposal was a positive commitment by Adani to get the project up and running.

“The proposed development of this transmission line will remove a major barrier to the opening of other resource and commercial activities in the central Galilee Basin,” Seeney said.

“What GTC is proposing is the construction of a $300 million open-access power line without adding any debt to the state’s balance sheet.”

Seeney said the director-general of the Department of Energy and Water Supply issued Galilee Transmission with an authority under the Electricity Act for an area in the Galilee Basin.

He said Adani indicated it wanted to begin coal production at the Carmichael mine by 2016-17 and a key component of this process would be the construction of the transmission line.

“Adani proposes spending in excess of $7 billion on the coal mine operations and accompanying rail, port, water and power infrastructure,” Seeney said.

“Adani has forecast the mining of some 60 million tonnes of thermal coal a year from open cut and underground mining operations from 2022.

“This project, including the rail line, could employ up to 2500 workers during construction and up to 2940 workers when it is operational.”

Seeney said the status of the Carmichael project was that Adani had been asked to provide further information to the coordinator-general relating to the environmental impact statement.

He said the development of the Galilee Basin coal resources had the potential to be a huge part of Queensland’s economic future.

“During these uncertain economic times this government has made it clear that it will support proponents that have the capacity to be first movers, whether that be with pit to port solutions, or with meeting their energy requirements,” he said.

“While there will be an advantage to first movers, this will not stop other projects accessing infrastructure during their developmental stages.

“This government’s support for a consolidation of infrastructure remains unchanged.”

The Australian Greens condemned the Queensland government's approval of Clive Palmer's China First coal mine in the Galilee Basin earlier this month.

“This coal mine would rip up the Bimblebox Nature Refuge - an 8000 hectare remnant patch of native woodland, which serves as an invaluable habitat refuge for native wildlife, including the endangered Black Throated Finch,” Greens spokeswoman Larissa Waters said.

“This is the third massive coal mine that the Newman government has approved in the Galilee Basin – two for Gina Rinehart and now one for Clive Palmer.

“The three mega coal mines would significantly increase Australia's contribution to global climate change, producing 100 megatonnes of coal every year. That's seven times more than the amount produced by Australia's current largest coal mine and more than one and a half times Queensland's total annual emissions.

“Clive Palmer's mine and one of Gina Rinehart's still need federal approval, but unfortunately both the old parties have the sorry track record of approving every single coal or coal seam gas project that has ever come before them under the Environment Protection and Biodiversity Conservation Act.”