Rio bauxite project gets the nod from Canberra
Known as the South of Embley project, it will allow Rio's existing bauxite operations near the Gulf of Carpentaria to expand to the south side of the Embley River.
The $US1.45 billion project has been at the centre of a political stand-off between the conservative government in Queensland and the federal government.
Queensland approved the project a year ago but Mr Burke intervened and demanded further investigations into the project's impact on shipping traffic through the Great Barrier Reef
Mr Burke approved the project on Wednesday with 76 conditions, many of which related to protection of animals such as dugongs, turtles and dolphins.
"The conditions I have imposed will ensure that shipping activity arising from this project does not negatively impact the outstanding universal value of the Great Barrier Reef, and meets the highest international standards in its planning, regulation, assessment and operation," Mr Burke said.
But a green light from Mr Burke does not ensure the project will go ahead; the Rio Tinto board will deliberate over whether to approve it, and the company is more cautious about spending money than it was when it first announced the project.
UNESCO has warned the reef is close to being placed on its "in danger" list at next month's World Heritage Committee meeting.
In a report released earlier this month, UNESCO said the federal and Queensland governments had failed to improve water quality or halt coastal developments.
Green groups say the Rio Tinto mine expansion would mean 900 extra ships a year crossing the reef.
with AAP
Frequently Asked Questions about this Article…
The South of Embley project is a planned Rio Tinto bauxite expansion near Weipa on the south side of the Embley River. It would extend Rio's existing bauxite operations in the Gulf of Carpentaria region and is estimated at about US$1.45 billion.
Yes — federal Environment Minister Tony Burke gave the project conditional approval, imposing 76 conditions. Queensland had already approved the project a year earlier, but the federal government intervened for further assessment before granting conditional approval.
Mr Burke imposed 76 conditions, many focused on protecting marine animals such as dugongs, turtles and dolphins. He said the conditions are intended to ensure shipping activity from the project does not negatively impact the Great Barrier Reef and that planning, regulation, assessment and operation meet high international standards.
No. The federal green light is conditional and does not guarantee the project will proceed. The Rio Tinto board still needs to deliberate and approve the investment, and the company has become more cautious about spending than when it first announced the project.
Concerns include the impact of increased shipping traffic through reef waters and broader reef stress. UNESCO has warned the reef is close to being listed as 'in danger' and has criticised federal and Queensland governments for not improving water quality or halting coastal developments. Green groups say the expansion could mean about 900 extra ships a year crossing reef areas.
According to green groups cited in the article, the Rio Tinto mine expansion could result in around 900 extra ships a year crossing the reef.
UNESCO warned the reef is close to being placed on its 'in danger' list at an upcoming World Heritage Committee meeting. In a recent report it said the federal and Queensland governments had failed to improve water quality or stop coastal developments, concerns relevant to large coastal projects such as South of Embley.
Investors should note that while conditional federal approval reduces some regulatory uncertainty, the project still needs board approval and faces environmental, reputational and compliance risks. The project is large (about US$1.45 billion) and carries scrutiny from UNESCO and environmental groups, which could affect timing, costs and outcomes.
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