Morrison government approves next step towards Adani coal mine

Michelle Grattan, University of Canberra

The Morrison government has ticked off on the groundwater management plan for the proposed Adani coal mine, an important but not a final step for the central Queensland project receiving the go-ahead.

The decision, taken by Environment Minister Melissa Price, comes after intense pressure from Queensland Liberal National Party members, including a threat by senator James McGrath to publicly call for Price’s resignation if she failed to treat the Adani project fairly.

Read more:
View from The Hill: It’s the internal agitators who are bugging Scott Morrison on Adani

But the Adani decision will not help Liberals fighting seats in the south, with strong anti-Adani campaigns in some key electorates.

Price said in a statement on Tuesday: “CSIRO and Geoscience Australia have independently assessed the groundwater management plans for the Carmichael Coal Mine and Rail Infrastructure project”, and both had confirmed the revised plans met strict scientific requirements.

“Following this independent assessment and the Department of Environment and Energy’s recommendation for approval, I have accepted the scientific advice and therefore approved the groundwater management plans” for the mine and rail infrastructure under Environmental Protection and Biodiversity Conservation Act.

She said the decision did not amount to final approval for the project.

It needed further approvals from the Queensland government before constructing could commence. So far only 16 of 25 environmental plans have been finalised or approved by the Commonwealth and Queensland with nine more to be finalised.

The project “must meet further stringent conditions of approval from the Commonwealth before it can begin producing coal,” Price said.

It had “been subject to the most rigorous approval process of any mining project in Australia,” she said.

Resources Minister Matt Canavan, a Queenslander who has been agitating for progress on the mine, said: “I welcome these further approvals. Now we need the state Labor government to stop dragging their heels and get on with the job of creating these jobs.”

Bill Shorten – who, like the government, has been caught between the conflicting imperatives of campaigning in central Queensland and in southern Australia on this issue – said the Queensland government now had to go through its processes.

Labor would “adhere to the law” and be “guided by the science,” he said. “We are not interested in sovereign risk.”

Referring to the pressure within the Coalition, Shorten said: “Trying to pressure people now creates a cloud over a process that didn’t need to be there but for the government’s division in their own ranks”.

Labor’s climate spokesman Mark Butler said that people across Australia would be asking themselves “how can you have any confidence that this decision was made on the merits of the case rather than because of the internal division and chaos in this government?”.

Read more:
Grattan on Friday: Scott Morrison struggles to straddle the south-north divide

The Australian Conservation Foundation’s Christian Slattery said “Coal-loving Coalition MPs appear to have strongarmed the Environment Minister into granting Adani access to Queensland’s precious groundwater on the eve of the election”.

Slattery said that if Price had been pressured to rush through the approval ahead of the election, the decision might be open to legal challenge.

He said the Queensland government was yet to sign off on Adani’s Black-Throated Finch Management Plan and Groundwater Dependent Ecosystem Management Plan.

“And, importantly, Adani does not have federal approval for the proposed above-ground water infrastructure it requires to support its proposed thirsty coal mine,” Slattery said.

GetUp said there would be a backlash against the decision. “The Coalition can expect to lose a swathe of seats around Australia for their capitulation to a single coal company at the expense of the community.

“A storm of local groups are already hard at work in Kooyong and Flinders, and now GetUp is going to make an extra 100,000 calls into Flinders and 80,000 calls into Kooyong. This could cost Josh Frydenberg and Greg Hunt their jobs”.

Tasmanian independent MP Andrew Wilkie said: “This decision is environmental vandalism at its most extreme, facilitated by the most useless environment minister the country’s ever seen”.

In a statement Adani complained about its treatment from the Queensland government.

“Throughout the past 18 months, the Federal Department provided us with certainty of process and timing, including the steps involved in the independent review by CSIRO and Geoscience Australia experts.

In contrast, the Queensland government has continued to shift the goal posts when it comes to finalising the outstanding environmental management plans for the mine and is standing in the way of thousands of jobs for Queenslanders.

It’s time the Queensland government gave us a fair go and stopped shifting the goal posts so we can get on with delivering these jobs.”The Conversation

Michelle Grattan, Professorial Fellow, University of Canberra

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Greg Hunt approves Adani’s Carmichael coal mine, again: experts respond

Samantha Hepburn, Deakin University; Adam Lucas, University of Wollongong; Craig Froome, The University of Queensland; Katherine Lake, University of Melbourne; Lynette Molyneaux, The University of Queensland, and Matthew Currell, RMIT University

Adani’s Carmichael coal mine yesterday received the green light from federal environment minister Greg Hunt for the second time.

The mine, originally approved in July 2014, had its approval set aside following a failure to consider two endangered reptiles – the ornamental snake and the yakka skink.

In a media release Hunt said that the approval comes with 36 of the strictest environmental conditions imposed in Australia. Final approval is pending Adani’s submission of a groundwater strategy to the federal environment department.

The approval also includes a rail link from the mine to the Queensland coast as a “precautionary measure to provide investment certainty”.

Below, our experts respond.

Samantha Hepburn, Professor, Faculty of Business and Law, Deakin University

Federal Minister Greg Hunt has reapproved the Carmichael Coal Mine in the Galilee Basin, following the decision of the Federal Court in August to set it aside.

The statement of reasons sets out that potential impact such a mine might have on the integrity of the coral reef systems in the Great Barrier Reef cannot be proven given the distance between the mine and the reef. Some heed is given to water impacts and endangered species.

All advice from the independent scientific committee is to be implemented; conservation of threatened species is to be improved through the creation of a A$1 million research program and groundwater management and monitoring plans for water within the Doongmabulla Springs area are required.

In the statement the minister accounts for greenhouse gas emissions from building and running the mine, however concludes that accounting for emissions from burning the coal is “speculative”. It concludes that these emissions will be controlled under international regulations. Greenhouse gases were a significant aspect of the original Federal Court application by the Mackay Conservation Group.

In ignoring the impact of greenhouse gas emissions from burning the coal (presumably on the formalistic basis that consideration is an indirect rather than an explicit requirement under the Environment Protection and Biodiversity Conservation Act), the Federal Minister indicates his preparedness to completely disengage with global climate change imperatives. If we are to stay under 2℃ of warming, coal is an obsolete resource. The strategic issue for Australia (and the globe) is how to manage the termination of existing coal plants and accelerate the shift to lower carbon intensive energy sources.

Knowing what we do about the imperatives of climate change, approving a vast new coal plant on the eve of the Paris climate change talks, in complete disregard of its significant greenhouse gas implications, is unethical and, at a global level, indefensible.

Katherine Lake, Research Associate, Centre for Resources, Energy and Environmental Law, University of Melbourne

Minister Hunt’s reapproval of the Carmichael mine is not surprising, given the government’s record for supporting mining and resources projects in Australia.

While the mine itself is contentious on environmental and economic grounds, the Federal Court’s earlier decision was very narrow and did not consider the climate change consequences of the proposed mine, as requested by the Mackay Conservation Group. The outcome was procedural, in that it required the minister to reconsider the conservation advice for the Yakka Skink and the Ornamental Snake, which are both threatened species impacted by the Carmichael project.

This follows other legal precedents in Australia where the courts have overturned major projects based on procedural grounds, but the climate change impacts of major developments are yet to be considered by the Australian courts.

Adam Lucas, Senior Lecturer, Science & Technology Studies Program, University of Wollongong

Adani needs A$16 billion to construct a coal-dedicated rail line from the Galilee Basin to its expanded port facility at Abbott Point. Fourteen of the world’s leading financial institutions have so far refused to bankroll the project.

The company revealed its intentions to focus on domestic mining and renewable energy in an August earnings statement to investors, and reportedly has begun discussions with landowners in the Bowen Basin to build a large-scale solar plant there. Although Adani itself appears to be losing interest in Carmichael, the Federal Minister for the Environment seems determined to see the project go ahead, even though it is both economically unviable and environmentally irresponsible.

Lynette Molyneaux, Researcher, Energy Economics and Management Group, Global Change Institute, The University of Queensland

International coal prices are declining, the Australian dollar is declining and Greg Hunt has given the environmental go-ahead for the Carmichael Mine. Gautam Adani might be smiling, along with his shareholders who must be hoping that the go-ahead for Carmichael might provide a boost to Adani Enterprises and Adani Power stock values, which are well off their highs. Languishing share prices have never been ideal for companies seeking to raise billions of dollars for risky, international projects with vocal opponents so there may still be a way to go before Adani and his shareholders are able to really smile about their opportunities in Australia.

Coal transported from the Galilee Basin to Abbott Point and then to India, is never going to be cheap, it’s just likely to be cheaper than originally expected. It certainly won’t translate into cheap electricity for India’s poor. India’s state electricity utilities are already subsidising electricity for the poor by charging rates that are below cost using very cheap Indian coal. Who will subsidise the additional cost required to fuel the power stations with more expensive Galilee Basin coal?

Craig Froome, Clean Energy Program Manager, Global Change Institute, University of Queensland

The Carmichael Mine project is again back on the table after receiving government consent, but one must question when or whether it will actually proceed. While Hunt has stated that it has been approved with the most stringent environmental requirements, is the market able to justify another coal mine?

Existing mines are reducing production and there have been announcements of job losses in many of the different mining sectors which would lead to the conclusion that the mine may be immediately mothballed.

We also have to consider that countries such as India, which would be the major destination for the coal, have come out publicly and stated that they intend to stop coal imports within three years. One would think that it would take at least this long for the mine to become operational.

While Australia still has considerable coal reserves and existing coal-fired power generators will not close before they are literally worn out (we only have to look at Hazelwood as an example), most countries that have relied on coal-driven electricity generation are seeking alternatives to meet increased demand, which in many cases is falling as energy efficiency measures kick in.

There is a future for the coal sector, but it is certainly not as rosy as it was, nor will it probably ever be again.

Matthew Currell, Lecturer in Hydrogeology, School of Environmental Engineering, RMIT University

The Carmichael mine, if constructed, is estimated to involve the extraction of approximately 12 gigalitres (billion litres) of groundwater. This is a very large amount of water – equivalent to about half of the yearly water extracted by two and a half thousand active coal seam gas wells in Queensland’s Surat and Bowen basins.

The mine does not have the consent of the traditional owners of the region, who have expressed deep concerns over the impact the mine would have on the landscape in the Wangan and Jagalingou country. In particular, the springs and streams that are fed by groundwater and support the ecological environments of the area are likely to be significantly affected.

The mine would cause large groundwater drawdowns, which would impact flows in the Carmichael river and in the Mellaluka Springs complex. The Doongmabulla Springs complex may also be affected; while the minister has imposed conditions of maximum allowable drawdown at these springs, the impacts are still uncertain and may not immediately manifest. Land subsidence is also expected to be significant – up to 5.5m over an area of nearly 8000 hectares.

Many of the groundwater modelling predictions about connections between shallow and deep aquifers, surface water features and the adjoining Great Artesian Basin are still uncertain. The minister’s approach of commissioning research to understand these issues would be a welcome step if it were to be conducted prior to the mine being given approval. However as in many recent cases, this sequence appears to be in the wrong order.

The Conversation

Samantha Hepburn, Professor, Faculty of Business and Law, Deakin University; Adam Lucas, Senior Lecturer, Science & Technology Studies Program, University of Wollongong, University of Wollongong; Craig Froome, Global Change Institute – Clean Energy Program Manager , The University of Queensland; Katherine Lake, Research Associate at the Centre for Resources, Energy and Environmental Law, University of Melbourne; Lynette Molyneaux, Researcher, Energy Economics and Management Group, Global Change Institute, The University of Queensland, and Matthew Currell, Lecturer in Hydrogeology, School of Environmental Engineering, RMIT University

This article was originally published on The Conversation. Read the original article.