Water approval for Adani’s Carmichael coal mine is revoked by a federal court

The federal court decided the federal government committed a “legal error” in evaluating and approving plans for the miner to pump 12.5 billion litres of water annually from a Queensland river, and so reversed a major clearance for Adani’s Carmichael coal project.

The government’s choice to not use the “water trigger” in its evaluation of Adani’s North Galilee Water Scheme was contested in court by the Australian Conservation Foundation.

The trigger is a provision of Australian environmental legislation that obliges the government to consider the effects on water of all proposed big coalmines and coal seam gas projects.

Policymakers’ Take

Sussan Ley, a representative for the federal environment minister, has previously defended a choice not to use the water trigger by arguing that the particular project – whose goal was to supply water to the Carmichael mine – was not in and of itself a coalmining development.

According to the federal court’s ruling, that logic is flawed.

Adani’s claim

Adani claimed that the choice will not have an impact on its operations, including the mine’s ongoing construction and future operation. Without access to the North Galilee Water Scheme, questions have previously been raised about whether there are enough resources to support water-intensive mining and building activities.

Adani claimed that the choice will not have an impact on its operations, including the mine’s ongoing construction and future operation. Without access to the North Galilee Water Scheme, questions have previously been raised about whether there are enough resources to support water-intensive mining and building activities.

Effect of the ruling

Because of the court’s ruling, the environment minister will now have a third chance to determine whether to use the water trigger. The ACF previously prevailed in a legal battle alleging that the federal government’s decision was taken improperly without giving public submissions adequate consideration.

Environmental concerns

According to environmental organisations, Ley must now use the trigger, which will necessitate a careful examination of Adani’s plans.

Groundwater, rainwater, and reclaimed water are some more potential water supplies for the mine site, according to Adani.

The water Adani could obtain without extra licences would be “little more than a puddle,” according to Tom Crothers, the former general manager of water allocation and planning for the Queensland government, and “nowhere near enough” to make up the shortage.

Previous incidents

The Carmichael coalmine project has been a hot topic throughout the campaign for the federal election as a result of Adani’s assertions that it is prepared to start construction.

In the days before the government transitioned into caretaker mode, Melissa Price, the federal environment minister, gave her approval to Adani’s groundwater plans.

In the run-up to the election, Adani clearly generated a false sense of urgency for permits, and the firm got exactly what it wanted: a hurried approval from Scott Morrison’s administration that was tainted by political involvement, Flint said.

Adani stated in a statement that it had the requisite water licences “for mining operations,” but did not mention the project’s construction stage precisely.

Major projects often renew the permits and licences needed for both on- and off-site construction and operational activities on a regular basis, and Adani Mining anticipates being treated equally with other Queensland mining companies in this process.

According to the ACF, the judgement “reaffirms the legitimacy” of the trigger as a safety measure under Australian environmental legislation.

“This is a great result for the protection of water from coal mining and coal seam gas production on our arid continent,” said Kelly O’Shanassy, chief executive officer of the ACF.

“It’s a gain for local people and farmers who rely on steady river water flows in our climate prone to drought.

It would establish a new precedent that major coal mining projects and the necessary infrastructure for coal seam gas development must be evaluated in accordance with our national environmental law.

Expert’s take

The decision, according to O’Shanassy, casts doubt on the Adani mine’s feasibility in the absence of that mine’s anticipated water source.

It’s difficult to imagine how Adani would have access to enough water to run its mine without the [water scheme].

“We anticipate the federal government to enforce the legislation fairly.”

Adani stated in a statement that it will “seriously evaluate the ruling” and its options moving forward, but added that the project would still move forward.

Effect on project

According to a spokeswoman, “the Carmichael mining and rail project is well under way regardless of today’s court ruling, and significantly, the North Galilee Water Scheme project is not necessary for these construction activities.”

For the operating phase, we have also acquired water that does not require the North Galilee Water Scheme.

For the avoidance of doubt, the decision made today won’t affect the Carmichael mine’s development or operation in any way.

The federal court’s ruling, according to O’Shanassy, “applies to other prospective water sources for the Carmichael project.”