Relief for Adani as Australian court dismisses plea challenging mine approval

Indian mining giant Adani's plan to build one of the world's largest coal mines in Australia cleared another legal hurdle on Monday after a top court dismissed an environmental group's plea for overturning the government's approval to the controversy-hit $21.7 billion project.

The Australian Conservation Foundation (ACF) had argued in the Federal Court that the former environment minister Greg Hunt failed to consider if the impact of burning coal and climate pollution was in line with global obligations to protect the Great Barrier Reef.

Welcoming the decision, the shares of Adani Enterprises settled the day 0.69 per cent up on the BSE.

In a press release, Adani Enterprises said that it will  "supply  better  quality coal  for  increased  thermal  coal  demand,  in  conjunction  with  significantly increased solar demand, in a growing Indian economy that will lift hundreds of millions of people out of energy poverty."

Reacting to the decision, ACF said it will not give up its efforts to stop Adani's project despite the court dismissing its challenge to the federal government's approval.

"Most Australians would be shocked that the government can legally approve the biggest coal mine in Australia's history, when this year the Great Barrier Reef has suffered the worst coral bleaching on record -- a direct result of global warming," ACF's CEO Kelly O'Shanassy said.

"If the Carmichael mine proceeds its coal will create 4.7 billion tonnes of climate pollution over the proposed life of the mine, wiping out Australia's efforts to reduce pollution and contributing to more frequent and severe bleaching events on the reef," O'Shanassy said.

"It is extraordinary that in 2016 a Federal Environment Minister can argue in court that a mega-polluting coal mine will have no impact on the climate and the Great Barrier Reef," she said.