Premier Annastacia Palaszczuk said the agreement reached would see dredge spoil dumped on land on the site known as T2, adjacent to the existing coal terminal, not on the Caley Valley wetlands or within the Great Barrier Reef World Heritage Area.

“I’ve always said I support the responsible and sustainable development of the Galilee Basin and Abbot Point, and the agreement we’ve reached demonstrates that,” Palaszczuk said.

“Today my government sends a clear message: we can protect the Great Barrier Reef, and we can foster economic development and create jobs.

“I am determined to deliver on my election commitments, and that includes no dumping of capital dredge spoil in the Great Barrier Reef World Heritage Area, no dumping of dredge material in the nationally significant Caley Valley wetlands, and no taxpayer funding for capital dredging and the disposal of dredge spoil.

“The government will not proceed with the current approvals process. We will withdraw the applications and present a new application centred on the T2 site. T2 is the only remaining unallocated industrial land at the port and the only responsible way to proceed with the Abbot Point development to ensure it is ready for future exports from the Galilee Basin.”

Adani CEO and country head Jeyakumar Janakaraj said the announcement showed a strong emphasis the state government had placed early in its term on securing jobs for the state.

“I welcome today's announcement because it demonstrates the priority the government has placed from the outset on ensuring economic development proceeds in Queensland subject to robust environmental standards,” Janakaraj said.

The Queensland government, through the Department of State Development, Infrastructure and Planning, will be the dredging proponent, consistent with longstanding practice that reflects the state’s position as the owner of the port, Adani said.

The cost of the dredging campaign will be borne by proponents such as Adani, as was also the case with the proposal advanced by the previous state government. It is envisaged that the Queensland government will soon proceed with application for an approval of this option from Federal Environment Minister Greg Hunt.

“Adani has consistently said that it will be guided by the best science and best advice on the options available to it from approving authorities with respect to dredging and disposal options. The option worked through with the state government, T2 at Abbot Point, is a site proximate to the existing terminal that was not available when offshore disposal was contemplated,” the company said in a statement.

“Adani has long welcomed the move to well managed and closely regulated onshore disposal of dredge spoil at such a site, as it is key to underpinning community confidence in our projects. The company is confident that this disposal option, based on the best scientific advice and undertaken in adherence with the strict state and federal environmental approval regimes in place, will be a key milestone in its plan to build a long-term future with Queensland.”

Queensland Resources CEO Michael Roche said the advancement of the Abbot Point expansion was another positive step forward to open up the Galilee Basin, which would benefit the state and the nation.

“I applaud the Palaszczuk government for coming to a decision on the Abbot Point expansion so swiftly after swearing in of the new Ministry,” Roche said.

“The proponents of the Abbot Point port development, in addition to current or future port proponents along the Queensland coast, would take comfort in the government's positive approach to balancing industrial development and environmental protection that is important to our state’s economy and to the health of the Great Barrier Reef.

“Our ports and shipping operations operate under the highest standards in the world and we will always support decisions that are based on the best science in addition to enhancing social, economic and environmental outcomes.”

State Development Minister Anthony Lynham said that unlike the previous government’s project, capital dredging costs will not be funded by taxpayers.

“We will ensure that approvals costs will be met by Galilee Basin proponents, with capital dredging costs to be paid for by the proponents to the Galilee Basin projects,” Lynham said.

Lynham said the new project referral under the federal Environment Protection and Biodiversity Conservation Act would involve a full Environmental Impact Statement process, which also allows for a new round of public consultation.

“The Port of Abbot Point development is vital to Queensland’s economic future. That’s why we are prioritising this project and are dedicated to ensuring it progresses in a transparent and environmentally responsible manner,” he said.

“We will immediately begin work on providing a robust and informed approval referral to the Commonwealth government and applications to state approval agencies.”