In a major boost to the GVK Group, Australia’s Supreme Court has rejected the appeal of anti-mining activists seeking cancellation of environmental approvals given to the company’s proposed Alpha Coal project in the Galilee Basin in Queensland province..
The project was challenged by the conservation group Coast and Country which had claimed that the mine would adversely affect groundwater and biodiversity in the region.
GVK Hancock on Friday welcomed the decision of the Supreme Court.
“We are pleased the court has clearly ruled that our project has continued to follow and comply with all regulatory and legal processes,” the company said in a statement.
During a recent interaction, GVK Reddy, Chairman of GVK group, had told BusinessLine that the company was in an advanced stage of interaction with potential partners.
According to GVK, the judgment combines the second and third court rulings in favour of the comprehensive suite of environmental assessments for the Alpha Coal project.
The proposed coal mine will be a full-open cut mine producing 32 million tonnes per annum for 30 years. The development of Alpha Coal project is expected to create 5,000 jobs during the three years of construction and over 2,000 long-term jobs during the 30 years of operation.
The next step involves continuing to work with the Government to meet specific requirements that will allow for the grant of the mining lease for the Alpha Coal project. And once approvals are finalised, the company expects to execute various agreements with customers and finalise all financing arrangements in preparation for the commencement of construction.
The company said that in 2011, about 125,000 tonnes of coal was extracted from a test pit on the Alpha Coal project site and sent for test burns, which revealed the quality content of the coal mined.
The legal challenges raised by anti-mining activists, were overruled and there was no involvement of landholders in the region, according to the company.