GVK dismisses critical coal project report
CLAIMS in a Greenpeace-commissioned report, that a multi-billion-dollar Central Queensland mine project was unviable, have been dismissed by Indian developer GVK.
The report from The Institute for Energy Economics and Financial Analysis - a group with an aim of reducing coal use - suggested the $10 billion mine, rail and port project was "stranded in the valley of death".
"Building Australia's largest black thermal coal mine in the untapped Galilee basin would challenge experienced operators but the combination of an inexperienced developer, slack demand globally for thermal coal and a deteriorating cost of production scenario in Australia moves the project beyond speculative," the report stated..
GVK's Alpha mine has earned approvals from both the Queensland and Federal Governments.
In a statement released by GVK, the report was labelled part of a "activist-motivated media campaign".
GVK defended its environmental credentials in delivering the Alpha project, quoting Environment Minister Tony Burke who said conditions were in place to manage any impact of the future mine on threatened marine species and the Great Barrier Reef.
Alpha is due to begin construction next year, with plans to mine its first coal in early 2017.
The statement also suggested GVK's plans had "some of the lowest operating costs in the global coal industry".
"We remain extremely confident of the successful, responsible delivery of our projects with our proven, experienced Australian management team."