Photographer:TomJefferson/Greenpeace

AustraliasGreatBarrierReef,theworldslargestcoralreef,ishometomorethan1,600
speciesoffish.IftwominingcompaniesfromIndiahavetheirway,theregionwillsoon
alsohostoneoftheworldslargestcoalshippingports.

AdaniEnterprisesisbehinda$5.5billionprojectthatwillconnectAustraliaslargestcoal
mine,whichitsplanningintheGalileeBasininQueensland,toanewterminalatAbbot
Point,about50milesfromthereef,alongthestatesnortheastcoast.Adanialreadyowns
oneterminaltherethatexportsasmallpercentageofcoalfromotherminesin
Queensland.TheIndianconglomerateGVKandAustralianminingcompanyHancock
ProspectingwanttobuildathirdterminaltoexportcoaltoAsia.

Theminingcompaniessaynewinfrastructurewillboostexports.Environmentalistsargue

thatariseincoalshipmentsfromtheareawillreleasemorecarbonintotheatmosphere
anddamagecoralthatsalreadyatriskfromclimatechange.Australiaexportsabouta
milliontonsofcoaladay.

Theterminalswouldbedisastrousforthereef,saysDavidBooth,directoroftheCentre
forEnvironmentalSustainabilityattheUniversityofTechnology,Sydney,andpresident
oftheAustralianCoralReefSociety.InMarch,ACRSissuedareportwarningthat
dredgingtheseabedtoenlargetheportwouldreleaseunderwatersedimentthatwould
damagethereef.TheSocietyisalsoconcernedaboutincreasesinshippingtrafficandcoal
dust.GVKHancockCoal,theIndianAustralianjointventure,hasdenouncedwhatitcalls
acampaignofmisinformationaboutnonexistentimpactstotheGreatBarrierReef.

DuringavisittoBrisbanefortheGroupof20summitlastNovember,PresidentObama
gotalessoninthepoliticsofthereef.Hiscommentsaboutthreatstotheecosystemfrom
climatechangepromptedarebukefromAustraliasministerfortradeandinvestment,
AndrewRobb,whocalledthemmisinformedandunnecessary.

AustraliaistryingtoaverttheembarrassmentoftheUnitedNationsdeclaringthereefan
endangeredsite.UnescowillmeetinJunetoconsiderachangeinstatus.PrimeMinister
TonyAbbott,whoasrecentlyasOctobersaidcoalisgoodforhumanity,hasscrambled
topreventthereputationaldamagethatwouldcomewithanendangereddesignationthe
GreatBarrierReefisaprimetouristdestinationforitssnorkelinganddiving.Weareall
conservationists,AbbotttoldreportersonMarch21onanislandnearthereef,wherehe
announcedalongtermsustainabilityplanandacknowledgedthethreatofclimatechange
tothereef.

TheoppositionLaborParty,whichtookcontroloftheQueenslandgovernmentin
February,isallowingtheprojectstogoforward,butitquicklymovedtoscrapport
expansionproposalsthatcalledfordeveloperstodumpdredgingwasteinanearby
wetlandordirectlyintotheocean.OnMarch11thenewstategovernmentannouncedthat
alldumpingmustgotoanonshoresitenexttotheAbbotPointterminal,whichis
designedtokeepsedimentawayfromthereef.Theplanalsocallsforindustry,not
taxpayers,tofootthebillforthedredging.Theproposalisenvironmentallysustainable
andfiscallyresponsible,theQueenslandgovernmentsaidinitsannouncement.

Still,theprojectsfutureisunclear.Criticshavelaunchedlegalchallenges.Withcoal
pricesworldwidedownbymorethanhalfinrecentyears,DanielMorgan,aUBSanalyst
inSydney,sayspriceswouldneedtojumpmorethan40percentfortheprojectstobe
viable.Newsupplyisnotneededbythemarketinthenext10years,hesays.

Adaniwantstostartproducingcoalin2017.GVKwontgiveastartdatebutsaysitwill
create7,500constructionjobsand$30.5billioninroyaltiesandtaxrevenue.Adanisays
10,000jobsand$16.8billioninroyaltiesandtaxrevenuewillcomefromitsproject.

Whileglobaldemandforcoalmaybeslowing,IndiaisstillforecasttopasstheU.S.asthe
worldssecondbiggestuserby2019,withannualgrowthof4.8percentinitsdemand,
accordingtoanInternationalEnergyAgencyreportinDecember.Theslideincoalprices
wonthurtthebusinesscaseforextractingcoalfromtheGalileeBasin,saysJoshEuler,
generalmanagerforexternalaffairswithGVKHancockCoal,sincetheprojectwilluse
cuttingedgemethodsthatmakemininglessexpensive.Itwillbeoneofthelowestcost
coalproducingoperationsinAustralia,hesays.Whenitcomestocyclicalswingsin
prices,headds,wearerelativelyimmune.

Thebottomline:TwoIndianminingcompaniessayinfrastructureimprovementsat
AbbotPointwillboostAustraliascoalexports.