Mine bosses decry green tape doubling
The country’s mining and resources sector says it shouldn’t have to go through such lengthy processes for environmental approval, targeting duplication of ‘green tape’ as a key election issue.
The coal sector regularly runs up against the duplication of environmental laws on the State and Federal levels, often having to work through an approvals process spanning years. Whitehaven Coal last week claimed it had to pay $21 million for infrastructure access for coal it had yet to produce, because of the three-year wait to secure the final approval for its $767 million Maules Creek project in NSW.
Whitehaven chairman Mark Vaile, who is also a former leader of the Nationals and deputy prime minister, said the approvals process had cost the company severely; "The Maules Creek application went in just before the state election and change of government... when we applied coal prices were sky high, the market was buoyant and access to capital easier... the costs have moved away from us in the four-year period we've been pursuing it and it's little wonder people do just walk away from these projects."
Mr Vaile says under the old model State approval was earned and taken into consideration for Commonwealth approvals, now he says there are two completely separate approval processes which are choking progress. Mitch Hooke, chief executive of the sector's key industry body, the Minerals Council of Australia, said Australia's regime for project approvals could not stand if the nation was to continue enjoying the benefits of selling resources worldwide.
"A study by the Australian National University shows that in the first 10 years of the operation of the Commonwealth's project approval laws... an extra $820 million had been added to the cost of approvals for no extra environmental protection," Mr Hooke said, "there is ongoing demand for Australia's resources but unless we dramatically improve our approvals system and policy settings more generally, we risk missing the boat."