Interview: Aussie State opens bids for new mining lands as bank pulls funding for thermal coal projects

The Queensland State Government in Australia said Friday that it will make 270 square km of coal land open for exploration bids in a tender process.

The land includes four blocks within the Bowen Basin, located on the east coast of Queensland, a region that is the largest exporter of metallurgical coal in the world, shipping more than 162 million tons of the commodity per year worth an estimated 17 billion Australian dollars (12.7 billion U.S. dollars).

"This release is a significant opportunity for explorers to gain access to land with the potential for thermal and metallurgical coal in a world-leading production region," Queensland Minister for State Development, Natural Resources and Mines Anthony Lynham told Xinhua Friday.

Lynham also emphasised that Queensland has a long and successful history of foreign investment in the state and welcomes overseas explorers.

With huge demand for Australian commodities, the resources industry in Queensland supports more than 30,000 jobs directly and a further 250,000 more broadly.

"Ongoing exploration is critical to maintaining this flow of economic benefit," Lynham said.

The state's announcement came on the day when Australia's second largest bank, Westpac, has said it will limit funding for thermal coal projects as a part of a new climate change action plan.

The move by the bank means a project by Indian mining outfit Adani in Queensland's Galilee Basin will likely struggle to get off the ground.

In a statement, Westpac CEO Brian Hartzer said "Westpac recognizes that climate change is an economic issue as well as an environmental issue, and banks have an important role to play in assisting the Australian economy to transition to a net zero-emission economy."

Lynham responded to the environmental concerns by explaining that Queensland has world-class standards of environmental safety and management.

He said approvals include environmental impact studies, consideration of the impacts on matters of national environmental significance and opportunities for community input.

"The operations are also monitored to ensure compliance with environmental authorities."

On a broader level, there is no doubt that the future is in renewables, however, Queensland's high quality and high energy coal has a role in the transition period, Lynham said.

"As well, the International Energy Agency says coal has an important role to play in Asia's energy mix." Endit