Australia approves Abbot Point coal port expansion

The expansion will boost the port’s capacity to meet anticipated export demand from proposed coal projects in the Galilee Basin, including Indian mining giant Adani’s controversial Carmichael mine.

Abbot Point is situated about 25km north of Bowen on the north Queensland coast, about 400km from the vast coal reserves of the Galilee Basin.

Initial plans called for three million cubic meters of material to be dredged and dumped into waters around the Great Barrier Reef Marine Park.

“The Queensland state Labor government’s Abbot Point Growth Gateway project has been approved in accordance with national environment law subject to 30 strict conditions”, a spokeswoman for Environment Minister Greg Hunt said.

“All dredge material will be placed onshore on existing industrial land”, the spokesman reportedly said.

In a statement, Adani welcomed the approval, saying the terminal’s expansion was integral to the mine’s development, which would generate thousands of direct and indirect jobs and $22 billion in state taxes and royalties.

“The approval given by Minister Hunt to the Queensland government mirrors the approvals given to Adani’s mine at Carmichael and North Galilee Basin Rail projects, in that they reflect the strictest, world’s best practice environmental safeguards”.

The Queensland Resources Council (QRC) expects “vexatious green activists” to do everything possible to disrupt and delay the Abbot Point project.

A reclaimer places coal in stockpiles at the coal port in Newcastle, Australia, June 6, 2012.

However, conservationists say the approved expansion will damage the reef.

“It’s ludicrous that Hunt has given the tick to a project which has no money, no social license, is universally hated, will wreck one of the greatest wonders of the natural world and which has been rejected by most of the world’s largest banks”, Williams said. “Damaging dredge plumes will be created harming sea grass and potentially reaching nearby coral reefs”.

The region around the port is home to dolphins and dugongs, which rely on the seagrass there for food. Further approvals are required from the Queensland Government.

The decision comes two months after the government approved Adani’s plan to build one of the world’s biggest mines.

With remaining state approvals and more certainty in the face of “politically-motivated” appeals, the Adanis remain focused on building a long-term future with Queensland, the company added.

The approval followed a long running argument between those for and from the mine.