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.”