125 projects have been
given the green light as the Abbott government demolishes objections
from the Greens and moves to reverse a predicted fall in mining
investment that could drag down the economy for two years.
Environment
Minister Greg Hunt has taken decisions on 125 projects in the
Coalition's first three months in office, including approving 29 major
projects, which the government estimates are worth $400bn. The decisions
- the latest of which was Clive Palmer's giant Waratah Coal/China First
coalmine and railway line to the Abbot Point coal port - could spark a
new wave of development.
Mr
Hunt also has approved the $1.4bn Abbot Point coal terminal expansion,
which paves the way for the creation of the world's biggest coal export
port.
But
the approvals - particularly coalmine approvals in the Galilee Basin
and the expansion of the Abbot Point coal port - have sparked
allegations of "development at any cost" from the Greens and environment
groups.
Queensland
Greens senator Larissa Waters has described the approval as a "terrible
Christmas present for the planet" and has raised concerns about its
impact on underground water aquifers as well as its impact on combating
climate change.
The
Abbot Point expansion has been attacked as "criminal" by environmental
groups that are calling for the Great Barrier Reef Marine Park Authority
to use its powers to protect the World Heritage-listed Great Barrier
Reef.
Mr Hunt said the government was sticking to high environmental standards.
He
also has fast-tracked another 46 projects to avoid delays, after
inheriting 371 unassessed projects from the previous Labor government,
with 22 dating back to 2008. "We have made real steps in unblocking the
pipeline while also putting in place some of the strictest environmental
conditions in Australian history," Mr Hunt told The Australian.
"It's
possible to have high environmental standards and genuine
decision-making. The previous government was unable to say yes and
unable to say no."
Mr
Hunt also has determined that a further 30 projects require no further
assessment and 16 require no further assessment as long as certain
requirements are met. Another 50 projects have been "assessed and
progressed" under the water trigger.
Any
short-term boost to mining investment would provide a much-needed
buffer to the economy and give more time to the non-mining sectors on
the east coast to fill the growth gap.
The
decision was delayed by Labor in August until after the federal
election and has proved controversial with environmentalists because the
expansion will require dredging, with mud to be dumped in the Great
Barrier Reef Marine Park.
Releasing
the mid-year economic and fiscal outlook earlier this month, Joe Hockey
said it was crucial the government "do everything we can to facilitate
new mining investments such as the Roy Hill iron ore project in the
Pilbara and gas projects across the country".
The
Treasurer said this was to compensate for the fact that mining
investment could detract up to 2 per cent from economic growth between
2014 and 2016.
On
winning office, Tony Abbott declared Australia was "open for business".
The Coalition had campaigned on reducing approval times for major
projects and speeding up assessments under the Environmental Protection
and Biodiversity Conservation Act by eliminating duplication between
state and federal governments.
The
approvals come as the Abbott government has turned its sights on
encouraging BHP Billiton to take up its shelved Olympic Dam expansion as
it seeks to find alternative economic opportunities for South Australia
in the wake of Holden's decision to stop making cars in Australia from
2017.
Federal
ministers have held talks with BHP about ways to assist in the
expansion of the South Australian uranium and copper project, including
research and development aid, approval processes and political stability
in decision-making.
Coalition
ministers have been assuring the mining giant there is a political will
to provide help on "one-stop" environmental approval procedures, the
potential use of clean-technology development funds for research and
development and certainty on the carbon and mining taxes.
At
his first Council of Australian Governments meeting this month, the
Prime Minister secured agreements with all states and territories to
give them responsibility for environmental approvals.
NSW
and Queensland had already signed "assessment bilaterals" at the
previous COAG meeting, while Labor-led Tasmania, South Australia and the
ACT signed memorandums of understanding with the commonwealth, along
with Coalition-led Western Australia, Victoria and the Northern
Territory
The
Business Council of Australia has been pushing for a single
environmental approvals process as a way to reduce costs to business and
avoid delays.
Mr
Hunt said all the decisions were "legacies" from the previous
government. "Each had been given preliminary approval but then stalled,"
he said.
"In
the final months of the previous government, decision-making ground to a
halt as they were more focused on themselves than on the country."
The
29 projects approved include Arrow Energy's Surat coal-seam gas
projects west of Brisbane and Arrow's Curtis Island liquefied natural
gas facility and associated pipeline north of Gladstone worth $15bn.
Also
on the list is GVK Hancock's Kevin's Corner coalmine in the Galilee
Basin in Queensland, the 7500-dwelling Huntlee residential development
in North Rothbury, NSW, and the Nambucca Heads to Waterfall Way Pacific
Highway upgrade in NSW.
Mr Hunt has also approved Esso's Scarborough floating LNG facility for Western Australia.
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