PERTH (miningweekly.com) – The Queensland state government has put in place financial and regulatory safeguards, as well as a stringent monitoring system to manage the water supply to the proposed Carmichael coal project.

Natural Resources and Mines Minister Dr Anthony Lynham said project developer Adani had to provide the government with A$20.15-million before drawing any surface water from a special reserve set aside for significant projects.

“The water licences provide the mine with a volume of water equal to about 1% of what farmers are able to use in the Burdekin catchment now,” he said.

“Adani has to pay the government more than A$20-million before it can use the surface water, and pay for it at a rate about three times what farmers currently pay in the lower Burdekin irrigation area.

“It has to have agreements in place with landholders whose existing ground water entitlements might be affected,” Lynham added.

He said there were nearly 270 conditions on this project to protect the natural environment and the interests of landholders and traditional owners.

“More than 100 of these conditions relate to groundwater. Most importantly, the government has the ability to require a mine to stop operations if any of these licences are breached,” the Minister said.

The $16.5-billion Carmichael project will comprise an opencut and underground mine, running for a period of 90 years and producing an average 60-million tonnes a year of thermal coal.

The Department of Natural Resources and Mines has granted Adani two water licences – one for surface water and one for groundwater.

The surface water licence grants the project 10 800 Mℓ of surface water a year at A$1 866/Mℓ.

Farmers currently have access to 1.22-million megalitres, and water for agricultural purposes is currently trading in the lower Burdekin catchment at about A$570/Mℓ.  

Almost another 140 000 Mℓ remain untapped in reserve in the Burdekin.

The licences also allow Adani to remove enough water from the mine to allow it to operate safely, Lynham said.

“My Department of Natural Resources and Mines advises that the modelling it assessed shows that up to 4 550 Mℓ of groundwater could be taken a year,” he said.

“This is roughly equivalent to the amount used each year by a 450 ha cane farm in the Lower Burdekin. Every operational mine in Queensland is authorised to remove groundwater that flows into the mine to make the mine safe, and reuse it if they wish.

“This project has been through extensive scrutiny by state and federal governments, as well as the community, during public consultation and in the courts.

“This project will generate thousands of jobs, business opportunities in northern and central Queensland, as well as royalties that will benefit the state as a whole,” Lynham said.

“These safeguards will ensure that water resources are protected and that this critical project progresses sustainably.”