MELBOURNE, Jan 30 (Reuters) - Australia's Great Barrier Reef watchdog is to decide by Friday whether to allow millions of cubic metres of dredged mud to be dumped near the fragile reef to create the world's biggest coal port and possibly unlock $28 billion in coal projects.
A dumping permit would allow a major expansion of the port of Abbot Point for two Indian firms and Australian billionaire miner Gina Rinehart, who together have $16 billion worth of coal projects in the untapped, inland Galilee Basin.
The Galilee Basin could double Australia's thermal coal exports and see it overtake Indonesia as the world's top coal exporter, further fuelling China's power plants and steel mills that have underpinned Australia's decade-long mining boom.
If the permit is not granted it would add to uncertainty over $28 billion in proposed Galilee Basin projects, already delayed due to difficulty raising funds with coal prices down.
The plan has sparked protests from environmentalists and scientists who fear the sensitive marine park will be damaged by the dumping and an expanded port, would nearly double shipping traffic through the reef, increasing the risk of accidents.
"The corals could stop growing or potentially die, depending on how long the mud stays there," said Louise Matthieson, a campaigner for Greenpeace Australia.
Enough mud will be dredged from Abbot Point, that if dumped on land, it would be bigger than the Great Pyramid of Giza.
Approval to dump 3 million cubic metres of mud within the marine park could place at risk the World Heritage-listing of the Great Barrier Reef, one of Australia's major tourism drawcards with an estimated economic value of $5.7 billion.
WORLD HERITAGE LISTING AT RISK
UNESCO, which awarded the reef its heritage listing, last year postponed a decision to June 2014 on whether to put the Great Barrier Reef on its "in danger" list or even cancel its World Heritage listing. It is awaiting a report from the national government on steps taken to address its concerns.
Australia's conservative government, elected last September, has already approved limited dredging to deepen Abbot Point on the northeast coast to spur development of coal resources.
But the Great Barrier Reef Marine Park Authority, an independent government agency charged with protecting the reef, needs to issue a permit to North Queensland Bulk Ports Corp to dump its dredged mud within the marine park.
In 2006, the authority allowed triple the amount of dredging waste from the port of Hay Point to be dumped in the reef.
The North Queensland Bulk Ports Corp says there have been no adverse effects from the Hay Point dumping.
Green groups fear political pressure to allow the Abbot Point dumping will be too great, with the Queensland state government keen to expand ports.
"The real politics of the situation is they have a new environment minister who expects them to toe the line," Matthieson said.
The Abbot Point expansion would add two new terminals for Adani Enterprise's and GVK-Hancock, a joint venture between India's GVK conglomerate and Rinehart's Hancock Prospecting, which have long term plans to export 120 million tonnes a year of coal all together.
Plans for a third new coal terminal at Abbot Point are on hold after BHP Billiton , Australia's biggest exporter of coal for steel mills, cancelled a port project as it cut capital spending as coal prices fell.
If allowed, North Queensland Bulk Ports Corp plans to conduct the dredging in two or three campaigns spread out over five years. But dredging is unlikely to start anytime soon, because the disposal site has yet to be designated and because Adani and GVK-Hancock have yet to line up funding.
"What would be a travesty is if they went ahead with the dredging and the companies didn't build the terminals," said Felicity Wishart, Barrier Reef Campaign director for the Australian Marine Conservation Society.
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.