Glencore's $1.5bn coalmine a step closer after Queensland grants special status
The Switzerland-based mining company Glencore will push
ahead with a proposed $1.5bn open-cut coalmine after the Queensland government
announced it had granted the project special status on Friday.
The Queensland government’s decision will bring
environmental and other assessments for the mine, which would dig up 20m tonnes
of the fossil fuel annually for 35 years, under the office of the state’s
coordinator general.
According to an April report from Glencore sent to the
Queensland government, “potentially relevant” to the project were four threatened
ecological communities, 26 listed threatened species, 12 listed migratory birds
and one nationally significant wetland.
Glencore said the move by the Queensland government was an
“important and positive step” for its planned Valeria mine, which would extract
a mix of metallurgical coal used to produce steel and thermal coal used for
power generation. The amounts of each type of coal were not specified.
Pressure from international investors concerned about the
climate impacts of burning coal pushed the company in 2019 to declare it would
not increase production of the fuel.
On Friday, the company said if the Valeria mine went ahead
the coal would “replace production from other Glencore coal operations” and be
“in line with Glencore’s global climate change commitments”.
The Queensland treasurer, Cameron Dick, said the mine could
bring 1,400 construction jobs and 950 ongoing jobs once operational.
The mines and energy minister, Dr Anthony Lynham, said: “The
mine’s proponent, Glencore, has advised any thermal coal produced by the new
mine will be subject to the company’s cap on thermal coal output, to support
global transition to a low carbon economy.
“Coal from this mine will be used to make steel that will be
vital for the global economy as it recovers from Covid-19.
“Steel is critical for construction but it’s also used for
key elements of a renewable energy future like solar panels, wind farms, batteries
and electric vehicles.”
Glencore’s “initial advice statement” sent to the government
in April said the Valeria project would cover 28,000 hectares, with a
“disturbance area” of 10,000 hectares. The capital cost of the mine was
estimated to be between $1bn and $1.5bn.
The report said the mine would produce coal for power
generation and coal for making steel, but did not say how much of each type
would be produced.
A desktop search had identified the threatened habitats and
species likely to be present in the project area, or be relevant to the mine’s
operation. A 2012 ecological survey of the site found no state-listed species,
the report said.
Fairbairn Dam, 29km to the south of the mine, has been
identified as a nationally significant wetland providing habitat to a range of
bird species.
Further ecological surveys would be carried out as part of
an environmental assessment likely to be submitted in 2021.
The report included a provisional timeline with construction
starting in 2024 and coal being produced by 2026.
Claire Fryer, a climate and energy campaigner at the
Queensland Conservation Council, said: “Queenslanders don’t realise we are
Australia’s biggest carbon emitter and burning coal is the biggest cause of
climate change. So to be discussing a new coalmine as a viable option is
unbelievable.”
She said the company had promised to investors that it would
take into account concerns over climate change when it made investments.
“This cap on coal is a cop out. To now announce they’re
pursuing this mine not only shows they don’t care about climate change, but it
also shows they don’t care about their investors either.”
Fryer said the Queensland government was delivering mixed
messages on the future of its energy supply. Earlier this week, Lynham said the
state was “undergoing a renewable energy revolution” after announcing a
$300,000 investment in a renewable energy hub.
But Fryer said as well as supporting the proposed mine, the
government had also this week announced $110m worth of upgrades at two
coal-fired power stations.
Fryer said: “Why is the government investing in a dying
industry? Our future is in renewables.”
The Valeria mine’s 20m tonnes a year production compares to
the 10m tonnes a year being planned for Adan’s Carmichael mine. However, Adani
has approvals in place to mine up to 60m tonnes of coal per year.
Ian Cribb, chief operating Officer for Glencore’s Australian
coal assets, said: “Our Australian coal operations will continue to produce the
high quality coal required to meet expected levels of global steel production
and energy demand in Asia.
“In Queensland, coal continues to be an important driver of
the economy as a source of jobs, royalties, reliable energy and support for
local businesses both in the city and the bush.”
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