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Business News/ Companies / Adani approval faces Australia’s independent Federal Court scrutiny today
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Adani approval faces Australia’s independent Federal Court scrutiny today

Environment activist groups had challenged in the federal court the approval given to Adani to excavate coal from the Carmichael coal mine in Queensland

Photo: Pradeep Gaur/MintPremium
Photo: Pradeep Gaur/Mint

Mumbai: Australia’s Federal Court will start hearing on Tuesday the case of the lawfulness of its federal environment minister Greg Hunt’s approval of the controversial $12 billion Carmichael coal mine project of Indian infrastructure conglomerate Adani Group.

In November, environment activist group Australian Conservation Foundation (ACF) had challenged in the federal court the approval given to Adani to excavate coal from the Carmichael coal mine in Queensland’s Galilee Basin. Read more

A final verdict is expected within three to six months. The court has the power to overturn the government’s approval to Adani Group if it deems the go-ahead decision for Carmichael coal mine project was not lawful.

The Adani Group initiated the Carmichael coal project in 2010 with plans to develop a coal mine and a rail link with Abbot Point port, but the project soon ran into opposition from environmentalists.

“Today marks the first day of a landmark climate change case in Australia," said ACF’s chief executive officer (CEO) Kelly O’Shanassy.

“ACF, Australia’s national environment group, is taking the federal Environment Minister to court, alleging that he unlawfully approved the largest coal mine in Australia’s history without having proper consideration to its climate change impacts," O’Shanassy said.

The ACF CEO said the green group will argue that the minister’s approval is inconsistent with the Australian government’s international obligations to protect the World Heritage-listed Great Barrier Reef Marine Park.

Adani Enterprises Ltd on 3 April won mining leases for its Carmichael coal project in Australia, moving a step closer to starting work at the controversial mine. Adani secured three leases from the Queensland state government for the coal project, which would be the largest in Australia.

In February, the Adani Group secured the approval of the Queensland government for the Carmichael mine project in the state’s Galilee Basin amid protests from environmental activists in Australia.

In December, Australia allowed expansion of the Abbot Point coal terminal in Queensland, which will enable shipping of fuel from mines in the Galilee Basin, including Adani Group’s Carmichael mine.

The expansion, which will see 1.1 million cubic metres of material dredged near the Great Barrier Reef, was granted approval with 29 riders.

“If the Carmichael mine is allowed to proceed its coal will produce 128.4 million tonnes of CO2 per year at peak production, contributing to the world’s climate problem," ACF’s O’Shanassy said.

“This is the first case of its kind to be heard in Australia. The Court will be asked to examine a section of Australia’s national environment law that has never before been tested in court. If this case is successful it will strengthen climate change considerations and World Heritage protection in Australian law," the ACF chief said.

ACF’s legal representative is arguing their side of the case on Tuesday.

On Wednesday, the minister’s lawyers and Adani’s lawyers will make their arguments.

“We expect the Federal Court to give a decision within three to six months. The Court has the power to overturn the Environment Minister’s approval if it deems the decision was not lawful. This case will set a precedent for further climate change decision making under the EPBC Act relating to burning of coal overseas, and duties to not act inconsistently with Australia’s responsibilities under the World Heritage Convention," said Jo-Anne Bragg, CEO of ACF’s legal representation Environmental Defenders Office Queensland (EDO Qld).

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Published: 03 May 2016, 09:35 AM IST
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