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Zombie coal: Clive and Gina fight to bring $18 billion of projects back from dead

Clive Palmer’s $5 billion Waratah coal project heads into the Land Court tomorrow as Gina Rinehart appears to have revived her plans for Queensland coal mines costing up to $12 billion.

Apr 19, 2022, updated Apr 19, 2022
Clive Palmer's coal project were vetoed while Whitehaven's was given the green light  (AAP Image/Darren England)

Clive Palmer's coal project were vetoed while Whitehaven's was given the green light (AAP Image/Darren England)

The State Government has confirmed that after nine years in mothballs, mining lease applications have been reactivated for the Kevin’s Corner and Alpha coal projects by GVK-Hancock in the Galilee Basin.

They were initially made almost a decade ago but were subsequently shelved when the market turned.

But before any leases were granted the company would have to finalise issues like compensation for landholders and prove financing.

While coal prices have reached record levels in recent months they were not expected to last into next year and development of the mines would extend well beyond that timeframe.

Asked about the prospects of her projects Gina Rinehart pointed to geopolitical instability, particularly in Ukraine.

“This has stark and important relevance to Australia, as we see the effect of green type policies in Germany and the USA, eroding their respective countries energy independence, and increasing their dependence on Russia,” she said.

“As has been said, the slow assistance to Ukraine, and the continuance of Germany and USA in particular, paying Russia billions of dollars daily for energy supplies , has helped to fuel the Russian war.  Their actual assistance to Ukraine sadly pales in comparison.

“The lesson to Australia should be to make ourselves energy independent, be that via coal, nuclear, hydro, gas, oil, solar, wind power, (the latter 2 with batteries, especially where not on grid) or other energy supplies, if not expensive and if reliable. And to be able to also help via exports those countries who are our friends or allies, supplying the energy and other resources they need. To this end, I welcome Mr Albanese’s recent comment, in relation to the ALP and coal.

“Spikes in prices will continue if investment isn’t put in to keep developing our coal and energy needs, and if approvals take too long, or are too onerous. ”

“Ukraine has shown us, I hope, that this would not be the best path for Australia. “

Apart from the mine developments, the projects would also need a spur line to link with the Adani rail line to the coast, costing considerably more.

Environmental Group the Sunrise Project said the Federal Government had already granted its approvals and no new ones would be needed, so speculation that it would impact a possible Labor Government were not correct.

Its project director Holly Creenaune said she doubted there was anything new happening on the Hancock projects because there had been no staff on the projects since 2015 and there appeared to be no new activity.

The original applications for the mines were massive and would dwarf Bravus’ (Adani) Carmichael mine. The plans for Alpha were for 30 million tonnes of coal a year and cost about $6 billion. Kevin’s Corner was also worth about $6 billion while Palmer’s Waratah Coal projects were for up to four underground mines and two open cut mines forecast to cost $6.4 billion in total, including a rail line. While there is a coal shortage at the moment it was unlikely that the market could cope with production at those levels.

The projects would generate thousands of jobs for central Queensland but also create a political firestorm.

Queensland Conservation Council director Dave Copeman said the GVK/Hancock mines proposed for the Galilee basin would be “a disaster for Queensland, Australia and the world”.
“No further approvals should be granted for any of these mines. They cannot go ahead if we are to stay below 1.5 degree warming,” he said.
“They would release hundreds of thousands of tonnes of methane in fugitive emissions and millions of tonnes of carbon when the coal is burnt. The Climate Council estimates that developing the Galilee Basin entirely could release more than 1.3 times Australia’s annual emissions.
“The world is moving beyond coal, and for Queensland to invite the world to the 2032 Olympics while opening new coal mines would make Queensland a global target for pressure, and threaten our clean green image.
“Kevin’s Corner mine has been vehemently opposed by local graziers who don’t want their local environment destroyed. In the more than 10 years since it was first proposed, we’ve seen the impacts of climate change accelerate, and the technologies we need to replace fossil fuels develop.

“We now have solutions that seemed improbable in the early 2000s when these mines were first proposed. The costs of wind, solar and batteries have fallen dramatically. Queensland can supply renewable energy, green hydrogen, manufacturing and critical minerals to the world, if we have the right policy and investment environments. This could create tens of thousands of jobs in Queensland, including 16,000 in Central Queensland.”

The Federal Government granted environmental approval to the Alpha mine in 2013 and the State Co-ordinator General provided conditional approval in 2012 under the Newman Government. The Kevin’s Corner mine was also proposed to be 30 million tonnes a year and earned federal approval in 2013.

Clive Palmer’s Waratah Coal project will head into the Land Court tomorrow after human rights objections from Youth Verdict Ltd and the Bimblebox Alliance.

Youth Justice is objecting on the basis that rights to culture and life were impacted while Bimblebox was arguing on the impacts to the environment. The case is set down for six weeks.

Palmer’s plans for Waratah have included a coal fired power station at Barcaldine and Waratah applied for approval through the local council. The State Government “called in” that approach earlier this year meaning it would now be decided by Planning Minister Steven Miles.

 

 

 

 

 

 

 

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