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Australia's Federal Government re-approves Carmichael coal project

The Federal Government of Australia has given Adani re-approval for its giant Carmichael coal mining project in central Queensland, after having declared it invalid over a bureaucratic bungle over two vulnerable species in August 2015. The project will be subject to strict environmental conditions and the government warned that the approval would be suspended or revoked in case of a breach of the conditions.

The A$16bn (US$12bn) project, developed by Indian group Adani Mining, was approved by the Queensland government in May 2014 and by the Australian government in July 2014. The controversial Carmichael project is estimated to hold 10 Gt of coal reserves and should produce 60 Mt/year of thermal coal. Coal production was expected to start in 2017, three years behind the original target, and could be delayed again. The whole project includes the construction of the mine, a 189-km rail line, water supply infrastructures and an airport. Coal should be exported to India from the Abbott Point terminal; the port plan (in partnership with GVK) has already won government's approval.