The GVK Group's Galilee Basin coal mine project has come in for Australian Government's scrutiny after the recent environmental assessment nod by the Queensland Government.

The Federal Environment Minister, Mr Tony Burke, in a statement had mentioned that the Queensland Government had failed to provide sound assessment of the project.

He is reported to have mentioned that this project called for closer assessment covering some of the missing aspects necessary for clearances.

Reacting to the developments, GVK said it was committed to norms and confident of a positive outcome.

The Minister's statement was being interpreted as if the environment clearance has been put on hold.

GVK further stated that it is equally concerned about the environment and will co-operate with authorities in the process. It expressed confidence that the company will achieve a positive outcome for the project.

After receiving environment clearance from the Queensland Government, GVK will need to seek federal clearance.

The Federal Government seeking additional information or clarification is not unusual in the process of securing a final Federal Government assessment, it said.

The Hyderabad-based GVK Group last week had informed about the local Government clearing environmental assessment for the Alpha Coal Mine project along with approval for a railway line and port projects. The company had hinted at an investment of up to $10 billion in phases.

GVK had gained interest in these mines after it acquired the Hancock coal mine projects for $1.26 billion in 2010. It invested in Alpha, Alpha West and Kevin's corner with total resources of eight billion tonnes of thermal coal.

vrishi@thehindu.co.in

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