Waratah Coal planned to build a new 25 Mt/y mine on its Galilee Basin tenements, which have an Inferred thermal coal resource of more than 4,300 Mt. However, Australia’s Federal Environment Minister Peter Garrett has rejected the plans for the mine, railway and port in central Queensland. He refused the plans under the Environment Protection and Biodiversity Conservation Act 1999, but suggested that an alternative proposal could still be submitted.

Waratah responded saying: “Having received the recognition of the Queensland Government for its proposal, Waratah is extremely disappointed with the decision to declare Waratah’s Galilee Basin Project as unacceptable under the EPBC Act. On 15th July 2008 the Queensland Government declared the project to be a project of State Significance. This proposal, at current contract prices would have potentially generated over A$10 billion of export revenue and over A$900 million royalties per year for the State of Queensland.

“Waratah considers that the Minister for Environment has exceeded his authority in dealing with Waratah’s proposal in the manner he has and believes the decision is wrong in law, and not in the National interest. Waratah does not believe that the proposal has been properly considered or its impacts properly assessed. Waratah considers that its proposal should have been afforded the opportunity of scrutiny under a properly directed and formatted Environmental Impact Study and its economic significance properly assessed.

“Waratah intends to proceed with an immediate challenge to the Minister’s decision in the Federal Court of Australia.”