PERTH (miningweekly.com) – Indian major Adani Group on Thursday said that while it was "regrettable" that the $16.5-billion Carmichael coal mine and rail project, in Queensland, had been further delayed by a recent Federal Court ruling, the company was confident that the project would regain its environmental approval.

The Federal Court this week overturned the project’s environmental approval, granted earlier by Environment Minister Greg Hunt. The approval was appealed by greens group, the Mackay Conservation Group, which argued that Hunt had failed to consider conservation advice when making his decision on the project.

Adani said in a statement that the company was committed to ensuring its mine, rail and port projects in Queensland were developed and operated in accordance with Commonwealth and state laws and regulations, including strict environmental conditions.

“It is regrettable that a technical legal error from the Federal Environment Department has exposed the approval to an adverse decision. It should be noted that the approval did include appropriate conditions to manage the species protection of the yakka skink and ornamental snake.

“However, we have been advised that, because certain documents were not presented by the department in finalising the approval, it created a technical legal vulnerability that is better to address now,” the company said.

Resource groups have lamented the latest development and economic development group Townsville Enterprise also expressed its disappointment with Federal Court's decision, with economic development manager Tracey Lines saying it would hamper growth in the region.

“We cannot underestimate what this project means for Townsville and the region. It is one of the largest mining projects in the nation with direct benefits to our city, including a major boost in confidence that will attract further jobs and investment into the region.

“The $16.5-billion project will deliver thousands of jobs for Townsville alone, as well as $22-billion in taxes and royalties to the state,” Lines said.

While the business sector had obvious concerns about the delay in the Carmichael development, greens groups have welcomed the court ruling.

Greenpeace has called on Hunt to seize the opportunity to permanently ditch plans for the Carmichael mine, which Australia Pacific climate and energy campaigner Nikola Casule said would devastate the Great Barrier Reef and would be a climate catastrophe.

“This is another nail in the coffin for the risky Carmichael project and a warning for the big four Australian banks to walk away from this project. Not only has it been called ‘unbankable’ by the Queensland Treasury, but 11 international banks have already chosen not to invest in it because of the financial and environmental risks,” said Casule.

Reports emerged on Thursday that Australia’s largest lender Commonwealth Bank had terminated its role as financial adviser to the Carmichael project.

A spokesperson for the financial institution confirmed the reports, telling Mining Weekly Online that the company’s advisory role on the project had been concluded.

However, the Commonwealth Bank was unwilling to expand on this, owing to client confidentiality.

Adani told Mining Weekly Online that the company itself had terminated the mandate with the Commonwealth Bank on the basis of its own concerns over ongoing delays to the approvals process for the Carmichael mine.

The approvals process for the mine was now nearing five years, a spokesperson for the Indian company pointed out.

"In the event the Commonwealth approvals framework is not further undermined by activists seeking to exploit legal loopholes, enabling the project and the thousands of jobs and billions of dollars investment it would bring to be delivered, Adani would happily work with the bank in future," the spokesperson said.

The proposed project would comprise an opencut and underground mine, running for a period of some 90 years and producing an average 60-million tonnes a year of thermal coal.

The Federal Environment Department would now take between six and eight weeks to compile a new report on the project, which would again be presented to Hunt.

Adani said on Thursday that, over the past 12 months, the company had maintained a level of investment and project timelines based on anticipated approval timelines and milestones; however, as a result of changes to a range of approvals over that time, it was necessary for the company’s timelines and budget for the Carmichael mine to change.