Australia’s largest coal producer has been approved to clear 136 hectares of koala habitat by the Queensland government.\u00a0<\/p>\n
But mining giant BHP Mitsubishi Alliance (BMA) says it is walking away from its central Queensland project because the state’s coal royalties are too high.\u00a0<\/p>\n
The Saraji East mining project proposed in the Bowen Basin south-west of Mackay was granted conditional approval by Queensland\u2019s environment department this week.\u00a0<\/p>\n
The mine expansion would still need federal government approval.\u00a0<\/p>\n
But the mining giant issued a statement which said it would not invest in any expansion or growth of operations in the state.\u00a0<\/p>\n
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BMA will require federal environmental approvals for the project.\u00a0 (ABC South West: Anthony Pancia)<\/p>\n
A spokesperson said that was because Queensland had an “unsustainable royalty regime”.\u00a0<\/p>\n
Queensland’s coal royalties\u2019 scheme \u2013 which has brought billions into state coffers \u2013 works on a sliding scale starting from a rate of 7 per cent when coal prices are below $100 per tonne to a peak of 40 per cent when prices are over $300\/t.<\/p>\n
The system was introduced by the previous state government at a time when coal prices were at a record high, but prices have dropped since.\u00a0<\/p>\n
In September, BMA cut 750 jobs in the Bowen Basin<\/a> and suspended its Saraji South mine blaming the royalty scheme and low coal prices.\u00a0<\/p>\n The Saraji South mine was shut by owners BMA in November. (ABC Rural: Kim Honan)<\/p>\n A spokesperson for Natural Resources and Mines Minister Dale Last said the government was not considering a change to royalties.\u00a0<\/p>\n Habitat at risk\u00a0<\/p>\n The Saraji East mine expansion, first proposed in 2013, was expected to create 1,000 construction jobs and 500 ongoing positions over the mine\u2019s more than 20-year life span.\u00a0<\/p>\n The environmental impact statement (EIS) found that the project site would clear 136 hectares of koala habitat and significantly impact 33.55 hectares supporting greater glider populations.\u00a0<\/p>\n The Queensland Department of Environment ordered BMA to offset the losses of habitat with conservation efforts.\u00a0<\/p>\n More than 130 hectares of koala habitat was going to be cleared if the mine extension proceeded. (ABC News: Brendan Esposito)<\/p>\n It also requested more evidence about how it would be able to offset 18 million metric tonnes of direct greenhouse gas emissions from the project over its life span.\u00a0<\/p>\n Conservation group, Lock the Gate Alliance, said Queensland needed to prioritise renewable energy over coal mines.<\/p>\n “Regional Queenslanders need a plan for\u00a0the\u00a0future that puts\u00a0them in\u00a0the\u00a0driver\u2019s seat and embraces\u00a0the\u00a0opportunities of\u00a0the\u00a0energy transition,” said Lock the Gate Alliance Queensland coordinator Maggie McKeown.\u00a0<\/p>\n “They don’t need more polluting coal mines that prioritise corporate profits over communities while fuelling climate change that is destroying what we love most about our beautiful state.”<\/p>\n Fears overstated<\/p>\n The state environmental approval for Saraji East comes within days of Chinese-backed company Yancoal pushing to\u00a0extend the life of its Yarrabee coal mine<\/a>\u00a0to 2070.<\/p>\n<\/p>\n
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