Federal Environment Minister Greg Hunt has approved the dredging and dumping of spoil on land to make way for the expansion of the Abbot Point coal terminal in north Queensland and the shipment of coal from Queensland's vast Galilee Basin.
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The expansion, which has been furiously opposed by environment groups concerned about the port's proximity to the Great Barrier Reef, would make Abbot Point one of the world's largest coal terminals.
Indian mining company Adani will use the expanded terminal for shipments from its proposed Carmichael coal mine, if that project proceeds.
Queensland's Labor government submitted an application to dump dredge spoil on land after the federal government banned the dumping of spoil at sea following a campaign by environmentalists and concerns from UNESCO's World Heritage Committee about the health of the Great Barrier Reef.
Mr Hunt approved the application for dredging and dumping on Tuesday with a list of 29 conditions.
"This project was proposed and developed by the Queensland government. Further approvals are required from the Queensland government," a spokeswoman for Mr Hunt said.
"The approved dredging has been reduced by 97 per cent from the original dredging proposal.
"All dredge material will be placed onshore on existing industrial land. No dredge material will be placed in the World Heritage area or the Caley Valley Wetlands."
Mr Hunt's spokeswoman said the port area was located 20 kilometres from any coral reef and no coral reef would be affected.
Under the proposal approved by Mr Hunt, up to 1.1 million cubic metres of sea bed can be dredged and dumped on land.
Mr Hunt's list of conditions include requirements for dredging to be done with equipment that has the lowest possible impact on the surrounding environment, measures to protect against extreme weather events, and water quality monitoring.
The application is the third proposal for dredging and dumping at Abbot Point after earlier proposals to dump dredge spoil at sea and then later on land that would include the nearby Caley Valley wetlands were abandoned.
Environment groups and the Greens reacted angrily to the decision on Tuesday, accusing Mr Hunt of trying to sneak through the approval while Australians were busy preparing for their Christmas holidays.
"The damage ticked off on today includes dredging 1.1 million cubic metres of the Reef floor which will mobilise about 10,000 tonnes of fine sediment, smothering seagrass habitat for dugongs and turtles," deputy Greens leader Larissa Waters said.
"What's worse is that this destruction on behalf of big mining companies like Adani will be paid for by the state Labor government at the expense of Queensland taxpayers."
Climate activists said approving the project was inconsistent with the agreement reached at the Paris climate conference, where countries promised to limit global warming to 2 degrees and aim for less than 1.5 degrees.
"The Turnbull government can't seriously sign on to deals which limit climate damage to 2 degrees and then give a green light to massive coal export projects which guarantee that the 2 degree target can never be met," 350.org campaigner Moira Williams said on Tuesday.
Approval for the dredging clears another hurdle for Adani, which needs a number of regulatory approvals for its mine to proceed.
The mining giant has promoted its project as a jobs boom for communities such as Bowen, which are in the midst of an economic downturn and want a large project to revive their employment opportunities.
The company has described opposition to its development as "politically motivated" and last month asked Prime Minister Malcolm Turnbull to introduce special laws that ban green groups from challenging large projects after they receive approval.
Adani had a win last week when Queensland's Land Court agreed the Queensland government could grant mining and environment leases for the project after community group Coast and Country tried to have the development stopped.
But the court found Adani had overstated the economic benefits of the mine, including the number of jobs and royalties it would generate.
Adani has also had to battle challenges to its project in the Federal Court and faces another challenge from the Australian Conservation Foundation to Mr Hunt's environmental approval for the mine itself.
"While additional activist-led challenges to detailed, thorough, independent and science-based approvals loom, this approval, coupled with last week's Land Court decision, is overwhelmingly a positive for Adani, and a step in the right direction for jobs in Queensland and exports from our state," Adani's spokesman said of the decision on Tuesday.
