Taxpayers fork out $31 million to clean up toxic coal gasification plant

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This was published 4 years ago

Taxpayers fork out $31 million to clean up toxic coal gasification plant

By Lydia Lynch

Queensland taxpayers are spending almost $31 million over the next four years to clean up land polluted by a private coal gasification plant.

Linc Energy, a failed Queensland energy company, caused serious environmental harm by polluting the Darling Downs site with hazardous contaminants despite warnings from scientists.

Former rich lister Peter Bond's Linc Energy was been fined $4.5 million for serious environmental damage.

Former rich lister Peter Bond's Linc Energy was been fined $4.5 million for serious environmental damage.Credit: Glenn Hunt

Budget papers reveal the Department of Natural Resources, Mines and Energy will contribute $21.9 million over four years and the Department of Environment and Science will pitch in $8.9 million over the next two years to fix up the site.

The company was was found guilty of five counts of wilfully and unlawfully causing environmental harm in the Brisbane District Court last year and fined $4.5 million.

Linc operated four underground coal gasification sites in Chinchilla where it burnt coal at very high temperatures to create gas.

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The ground had been fractured by injecting air as part of the UCG process and while the company tried to seal them with concrete and use wells to control pressure this didn't sufficiently reduce risks or damage.

The UCG operations left water polluted to the point it was unfit for stock to consume, the court heard last year.

Scientists and workers warned senior managers about gases bubbling from the ground, but Linc kept operating.

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A spokesman for the department of Natural Resources, Mines and Energy did not answer questions about whether it was fair that taxpayers had been slugged with the clean-up bill.

"On the former Linc site the department is progressing the Hopeland Remediation Project which includes environmental monitoring and assessments, demolition and removal of infrastructure," the spokesman said.

"In April 2019 the Queensland Government further strengthened the rehabilitation provisions and financial safety-nets in the resource sector as part of the new Financial Provisioning Scheme to better protect the taxpayer.

"As the scheme gets further established it will act as the state’s insurance policy to help support the rehabilitation if required of any future abandoned mines."

Opposition Natural Resources and Mines spokesman Dale Last said "Annastacia Palaszczuk had a seat at the cabinet table when Labor signed off on this mine."

"Taxpayers are now covering for Labor’s reckless decision, which also sold out agriculture in the region."

According to budget papers, the department of Natural Resources, Mines and Energy will contribute $21.9 million over four years and the department of Environment and Science will pitch in $8.9 million over the next two years to clean up the site.

Another $5 million is being spent in the next two years to monitor four other abandoned mines: Wolfram Camp Mine, Collingwood Tin, Herberton Tailings Facility and Mount Oxide Mine.

- with AAP

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