The Queensland government says a new $1.5 billion coal mine will help the state recover from the blow delivered by coronavirus.

Treasurer Cameron Dick says Glencore’s $1.5 billion Valeria mine, in the Bowen Basin, could provide 1400 construction jobs and 950 permanent jobs once it’s open.

The mine, which will produce thermal coal for electricity and metallurgical coal for steel, has just been declared a coordinated project by Queensland’s independent coordinator-general.

The coordinator-general will now draft terms of reference for an environmental impact study.

Last year, Glencore announced it would continue to mine thermal and metallurgical coal, but would limit global production to about 145 million tonnes a year.

But critics of the cap have said it means little, and Glencore remains free to open up new mines as long as it doesn’t exceed its cap.

The government said Glencore would include any thermal coal from the Valeria site in its cap “to support global transition to a low carbon economy”.

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Mr Dick said another new coal mine for Queensland is good news in terms of job creation.

“This new mine has the potential to create hundreds of new jobs as Queensland recovers from the extraordinary shock of the global coronavirus pandemic,” he said in a statement on Friday.

AAP

 

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