QUEENSLAND'S Land Court has recommended the state government approve Xstrata Coal's massive new thermal coalmine at Wandoan, in the Surat Basin, deeming objections based on the mine's likely contribution to climate change to be "irrelevant".
The Wandoan project was challenged by Friends of the Earth, mainly on the grounds that it would be responsible for 1.3 billion tonnes of greenhouse gas emissions over its lifetime - equal to twice Australia's annual emissions - and displace agricultural land.
In a decision handed down yesterday, the president of the Land Court, Carmel MacDonald, recommended approval of the project, subject to groundwater monitoring and excision of some land from the lease, but found the state's environment protection laws were "limited to Queensland's environment".
"The court can only be concerned with the global impacts of the 'mining activities' which are the subject of the environmental authority application before the court - that is, the physical activities of winning and extracting the coal that may be authorised. Activities which may be carried on under the authority of a mining lease ... do not extend to the transportation and burning of the coal in power stations.
"Most of the evidence led by the FoE centred on GHG emissions from the use of the coal in power stations. In my view, this evidence is irrelevant to the court's task."
A Friends of the Earth spokesperson said it would consider an appeal. Xstrata Coal's Queensland chief operating officer, Reinhold Schmidt, said the decision recognised the company's "ongoing commitment to environmental management and our willingness to listen to and accommodate individual landholder needs".
If approved by Queensland's new mining minister, Wandoan will be Xstrata's biggest Australian project. In the first stage Xstrata envisages spending $7 billion to develop an operation extracting 22 million tonnes a year, with potential to expand to 100 million tonnes a year over a mine life of more than 30 years.
Xstrata owns 75 per cent of Wandoan, with the remainder split between its partners Itochu and Sumitomo. It has hired Macquarie Capital to sell a 20 per cent stake to a third partner. Xstrata is the subject of a $US9 billion ($8.5 billion) friendly merger proposed by Glencore.
In a speech this month, the chief executive of Xstrata Coal, Peter Freyberg, criticised green groups funding an anti-coal campaign that included proposed litigation to stop new coalmine developments.
"Tying Australia's legal system up with numerous cases with the intention of delaying coal projects rather than a bona fide legal complaint is an abuse of our judiciary and a waste of taxpayers' money, for a cause that will cost Australia jobs, tax revenues and the many benefits the coalmining industry brings to rural communities and the nation as a whole," he said.
Frequently Asked Questions about this Article…
What did Queensland’s Land Court recommend for Xstrata’s Wandoan coalmine approval?
The Land Court recommended that the state government approve Xstrata Coal’s Wandoan coalmine, subject to conditions such as groundwater monitoring and excision of some land from the lease. The court also found objections based on the mine’s likely contribution to global climate change to be irrelevant to its statutory task.
Why did Friends of the Earth challenge the Wandoan coal project?
Friends of the Earth challenged the project mainly on the grounds that the mine could generate about 1.3 billion tonnes of greenhouse gas emissions over its lifetime — reportedly equal to twice Australia’s annual emissions — and that it could displace agricultural land. The group said it would consider an appeal after the Land Court decision.
What production capacity and investment does Xstrata propose for the Wandoan mine?
Xstrata envisages spending about $7 billion in the first stage to develop an operation extracting roughly 22 million tonnes a year, with potential expansion to as much as 100 million tonnes a year over a mine life of more than 30 years.
Who owns the Wandoan project and is Xstrata selling any stake?
Xstrata owns 75% of the Wandoan project, with the remainder split between partners Itochu and Sumitomo. Xstrata has hired Macquarie Capital to sell a 20% stake to a third partner.
Are there environmental conditions attached to the Land Court’s recommendation?
Yes. The Land Court’s recommendation included requirements such as groundwater monitoring and excision of some land from the mining lease as conditions for approval.
Is the Land Court recommendation the final approval for the Wandoan mine?
No. The Land Court recommended approval, but the project still requires formal approval from Queensland’s mining minister before it can proceed.
What has Xstrata’s management said about legal challenges from green groups?
Xstrata Coal’s chief executive, Peter Freyberg, criticised green groups for funding anti-coal campaigns and litigation aimed at delaying coal projects. He described such legal actions as an abuse of the judiciary and said they risk costing jobs, tax revenue and the benefits the coal industry brings to rural communities.
How does the Wandoan project relate to the proposed Glencore–Xstrata merger?
The article notes that Xstrata is the subject of a US$9 billion (about $8.5 billion) friendly merger proposal from Glencore. The Wandoan project would be Xstrata’s biggest Australian project if approved, but the article does not link the Land Court decision directly to the merger outcome.
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