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ARTICLE · 02 MARCH 2023

Australian Coal Mine Projects Stall Due To ESG Risks

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The ESG challenges faced by proponents of future resources projects in Australia have been highlighted in recent decisions which have halted the development of proposed coal mines.

AustraliaEnvironment

The ESG challenges faced by proponents of future resources projects in Australia have been highlighted in recent decisions which have halted the development of proposed coal mines.

In February 2023, Australia's federal Environment Minister exercised her powers under the Environmental Protection and Biodiversity Conservation Act 1999 (Cth) ("EPBC Act") to block the development of the proposed 'Central Queensland' coal mine. The Minister concluded that the proposed open-cut mine, located only 10 kilometres from the world's largest coral reef system, the Great Barrier Reef, and upstream from other waterways, posed an unacceptable risk to the reef and freshwater ecosystems in the area. The decision was in line with the recommendation of State decision makers but marked the first time that a federal Minister has exercised these powers to reject such proposals.

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