ID :
187277
Wed, 06/08/2011 - 14:58
Auther :
Shortlink :
http://m.oananews.org//node/187277
The shortlink copeid
Floods continue to cost Qld coal companies
SYDNEY, June 08 (AAP) - Mining royalties reaped by Queensland will be severely impacted if the government doesn't allow the release of floodwaters hampering coal mine operations, the industry says.
Queensland Resources Council (QRC) chief executive Michael Roche said the credibility of royalty estimates in next Tuesday's state budget would depend on allowing water equivalent to the volume of Sydney Harbour to be removed from half of the state's coal mines.
Three-quarters of Queensland's coal mines flooded in some way this summer and half are still affected.
Mr Roche said the industry could not move to normal production and export levels while mines had to pump water around temporary storage sites because they couldn't release it off site.
"At the moment the best thing they can do is simply pump water out of higher priority coal pits into lower priority areas," he told AAP.
But that could not continue indefinitely, especially if mines were again inundated in the next wet season, he said.
"We're hoping to get some changes which mean that more water can be discharged... but not in a way that really risks environmental harm," he said.
Mr Roche said sustainable royalty numbers over the forward estimates required a long-term fix, which in itself will take some months to have effect.
Coal exports in May were 23 per cent below last year's level and were the lowest month of May export tally for at least five years.
Before the wet season, Queensland's coal industry was set to export at least a record 200 million tonnes in 2010-10, but that will likely fall 40 million tonnes short, costing Queensland coal exports of $7 billion, the QRC said.
Environment Minister Kate Jones is reviewing the conditions governing water discharge from coal mines.
Ms Jones said all mining companies were advised to apply for a Transitional Environmental Program in October last year.
"Those that did were able discharge very quickly at the height of the floodwaters," she said in a statement.
"Permits issued by DERM are issued under strict guidelines to make sure there is minimal risk to the environment and downstream users such as farmers and their cattle."
She said her department has put on extra staff to manage the high case load and they have been working around the clock to get applications approved.
So far 74 Transitional Environmental Programs have been approved, she said.
Queensland Resources Council (QRC) chief executive Michael Roche said the credibility of royalty estimates in next Tuesday's state budget would depend on allowing water equivalent to the volume of Sydney Harbour to be removed from half of the state's coal mines.
Three-quarters of Queensland's coal mines flooded in some way this summer and half are still affected.
Mr Roche said the industry could not move to normal production and export levels while mines had to pump water around temporary storage sites because they couldn't release it off site.
"At the moment the best thing they can do is simply pump water out of higher priority coal pits into lower priority areas," he told AAP.
But that could not continue indefinitely, especially if mines were again inundated in the next wet season, he said.
"We're hoping to get some changes which mean that more water can be discharged... but not in a way that really risks environmental harm," he said.
Mr Roche said sustainable royalty numbers over the forward estimates required a long-term fix, which in itself will take some months to have effect.
Coal exports in May were 23 per cent below last year's level and were the lowest month of May export tally for at least five years.
Before the wet season, Queensland's coal industry was set to export at least a record 200 million tonnes in 2010-10, but that will likely fall 40 million tonnes short, costing Queensland coal exports of $7 billion, the QRC said.
Environment Minister Kate Jones is reviewing the conditions governing water discharge from coal mines.
Ms Jones said all mining companies were advised to apply for a Transitional Environmental Program in October last year.
"Those that did were able discharge very quickly at the height of the floodwaters," she said in a statement.
"Permits issued by DERM are issued under strict guidelines to make sure there is minimal risk to the environment and downstream users such as farmers and their cattle."
She said her department has put on extra staff to manage the high case load and they have been working around the clock to get applications approved.
So far 74 Transitional Environmental Programs have been approved, she said.
