The Government announced the mining lease approval this afternoon, but the company behind the project, New Hope, is already voicing concerns about more legal objections slowing down the project development.

“After careful consideration I have approved the mining leases for stage three of the New Acland project,” Resources Minister Scott Stewart said.

“The project also requires an associated water licence from the Department of Regional Development, Manufacturing and Water.”

However, the mining lease is the crucial document needed by New Hope after it received environmental approval earlier this year. Rejecting the project’s water licence now seems unlikely.

The decision is likely to cause outrage from environmental groups and landholders in the area after years of litigation saw the approvals head to the High Court.

InQueensland reported earlier this week that New Hope had begun early works on the project, but chair Robert Milner said it was still at risk of delays caused by protestors.

“Unfortunately after 15 years of seeking approvals, New Hope remains at risk of ongoing delays caused by objectors utilising the court system to engage in lawfare to slow down the approval process, regardless of the merits,” he said.

“New Acland stacks up environmentally, socially and financially and is consistent with, and delivers on, the recently released and extensive Queensland Government Resources Industry Development plan.”

Queensland Resources Council chief executive Ian Macfarlane said today’s announcement is a relief for the company, local businesses and people in the local community, who have supported the proposed mine extension through 15 years of legal wrangling.

“No resources project in Queensland history has been more scrutinised or assessed than New Acland Stage 3, so this is very welcome news for people in the Oakey district,” Mr Macfarlane said.

Activist group the Oakey Coal Action Alliance was now preparing for a bigger battle over the project’s “disastrous groundwater impacts”.

“The local community has been put through hell by New Hope’s existing mine. It devoured the town of Acland, sending most of Acland’s residents elsewhere, and it ruined the lives of residents in the surrounding district with noise and dust pollution,” OCAA secretary Paul King said.

“Re-opening this mine now will divide this community once again and put at risk the groundwater resources that the local dairy industry, among others, absolutely relies on.

“Queensland Resources Minister Scott Stewart had the opportunity to put an end to this division and prevent this dangerous, unwanted project for good, but he blew it.

“We’re calling on Water Minister Glenn Butcher to show the courage Resources Minister Scott Stewart apparently lacks, and reject a groundwater licence for the mine expansion.”

New Hope said this week it had unaudited cash earnings of $1.5 billion for the financial year.

The company’s bumper year followed soaring prices for thermal coal. The benchmark Newcastle coal price was $US404 for the final quarter during which New Hope generated an underlying EBITDA of $645 million.

The company now had cash and equivalents of $815 million and its forward sales book “remains heavily sold in the coming 12 months”.

New Hope shares have reached a decade high of $5 recently on the back of the booming price for coal and speculation the Acland project would be approved.