Feds axe Palmer’s giant Qld coal project over risk to Reef

In one of her first acts, Environment Minister Tanya Plibersek has kyboshed the billionaire’s massive mine proposal.

A massive coal project in central Queensland proposed by billionaire Clive Palmer has been kyboshed by the federal government because of the risk to the Great Barrier Reef.

Environment Minister Tanya Plibersek on Thursday issued a notice proposing to refuse an application to construct the Clive Palmer-backed Central Queensland Coal Project because it was “likely to have unacceptable impacts to the Great Barrier Reef Marine Park, and the values of the Great Barrier Reef World Heritage Area.”

The mine would have seen the annual production of up to 10 million tonnes of thermal and coking coal for a quarter of century, creating up to $8.2bn in export revenues and employ as many as 500 people. The project is 130km northwest of Rockhampton – and just 10km from the Reef World Heritage area.

Ms Plibersek said available evidence also suggested that the project would be likely to have unacceptable impacts on water resources in the area.

The mine was deemed unsuitable to proceed by the Queensland government in April 2021. The state government at the time said it considered the project would significantly contribute to the economy, but did present a number of significant risks including its proximity to the Great Barrier Reef Marine Park.

Coal proposal on the nose

Ms Plibesek said her decision had been informed by the recommendation of the Queensland government, the advice of the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development and the views of the public.

“My department has contacted the proponent to advise them of my proposed decision,” she said. “I will also be seeking public comment for 10 business days on my proposed decision.”

The decision was welcomed by environmental groups with Lock the Gate coordinator Ellie Smith noting it had been clear for a long time “that building a coal mine just 10km from the Great Barrier Reef was a crazy idea.”

“It’s really positive to see the federal environment minister respect the science and listen to the experts who have recommended against this project,” Ms Smith said.

“The future of the reef, the rivers that flow into it and the communities and tourism operators that depend on it are too precious to be put at risk from a highly polluting coal mine.”

The Australian Marine Conservation Society said that following the fourth mass bleaching event on the reef since 2016 “it is vital new coal and gas projects like this are refused.”

Comment has been sought from both Mr Palmer and Central Queensland Coal. In a report produced last year, the company said there would be “no significant impacts to the Great Barrier Reef and fish habitat area from” mining activities. “The project will have a positive impact by providing a positive sentiment control plan,” it said.

Central Queensland Coal also has touted the economic benefits of the project including boosting employment in the nearby townships of Ogmore, St Lawrence and Marlborough.

“The current increase in global demand for coal, particularly in South East Asia and India, together with forecast increases in steel and power production support the justification for the project,” the report said.