News | 10th Dec, 2009

Brumby cans coal projects

Thursday, 10 December 2009
Royce Millar and Adam Morton, The Age

The Brumby Government has shelved its controversial plans to allow the mining and export of Victorian brown coal to India, amid fears of a voter backlash.

Three months after plans to allow Melbourne-based Exergen to launch a $1.5 billion coal export scheme were revealed, Energy Minister Peter Batchelor has now ruled it out.

The company wants to mine, dry and export 12 million tonnes of brown coal a year to be burned in Indian power stations. Its proposal would be the first major export of Victoria's carbon-intense brown coal.

The Government rethink comes after The Age revealed leaked cabinet documents in October showing that a priority allocation of coal for Exergen was ''imminent'' and that a tender had been proposed for next year to allocate an extra 13 billion tonnes of coal.

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