Australian ministries spar, GVK Alpha mine hangs fire

The much-hyped acquisition of Alpha coal mine by infrastructure major GVK seems to have hit a “green” hurdle in Australia.

The federal government of Australia has put on hold approval of the environmental clearances given to the project by the Queensland government on May 29.

“I am stopping the clock on the process which has been given to us by the Queensland government,” said Tony Burke, Australia’s federal minister for sustainability and environment.

Under bilateral agreements, the project needs to secure approvals from the Queensland government as well as the federal government.

GVK has invested in three mines (Alpha, Alpha West and Kevin’s corner) with total resources of 8 billion tonne of thermal coal, in addition to rail and port facility. The project, involving development of the coal mines, a railway line and a port, has an outlay of $10 billion and is 21% owned by Hancock Prosperity, led by Gina Rinehart, Australia’s richest woman.

The federal minister has also criticised the way the Queensland government accorded the approval to the project based on incomplete information and asked him to take a decision on the issue within 30 days.

“Because the Queensland government has not provided a sound assessment, I will be required to obtain the information that Queensland has failed to provide. This will result in unnecessary and costly delays for the project,” Burke said in a media release on June 1.

“If I am going to have to commence a duplicated process, then I would rather make that decision soon than add to the irresponsible delay the Queensland government has already created,” he added.

A GVK spokesperson sought to play down the speed bump. “The federal government asking a proponent to provide additional information and/or clarify existing information is not at all unusual in the process of securing a final federal government assessment,” he said.

“GVK is fully committed and is working to ensure that any supplementary information and/or clarification of existing information that may be required by the federal government, is provided by GVK in an expedient manner to facilitate the final assessment,” the spokesperson added.