New Alcoa coal deal angers Greens

25 Oct 2011, 7:42 pm   -   Source: AAP
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The Victorian government says new legislation will strengthen environmental safeguards at Alcoa's Anglesea coal mine, but the Greens disagree.

Victoria is set for 50 more years of pollution following its government's new agreement with aluminium producer Alcoa's coal mine in the state's southwest, the Greens say.

The Victorian government introduced legislation on Tuesday it says will "modernise" its agreement with the Anglesea coal mine and power station.

The smelter, rolling mill and power plant, which employs about 1100 people, began operating the mine in 1961.

The Liberal government says the agreement will strengthen environmental processes and support jobs, but the Victorian Greens say it does nothing for the environment.

"In less than a year the `pollution' party have shut down Victoria's wind industry, gutted the solar industry and have now locked us in for 50 more years of burning coal," Victorian Greens leader Greg Barber said.

The government had not won any improvements in environmental or emissions standards in the new agreement, Mr Barber said.

"All it has done is surrender more of the Anglesea heathland," he said.

Mr Barber said the $13.94 million bond for rehabilitation of the site outlined in the agreement was inadequate.

"The Anglesea healthland is some of the most bio-diverse land in the world, and once it has been destroyed it can never be fully rehabilitated," he said.

In 2008 Alcoa advised the former government it would exercise its right to extend its lease another 50 years.

The government said the 2011 agreement was secured in "good faith" negotiations, and while Alcoa had an automatic option to extend its original agreement, any future extension would need the consent of both Alcoa and the government.

Energy and Resources Minister Michael O'Brien said the new agreement would require Alcoa to submit a map of planned mine activities, potential environmental impacts and how they will be managed.

The work plan will need the state government's approval.

Any future mine expansion will be limited to three per cent of its total lease area, which is 7145 hectares, and be subject to a new environmental process, the government says.

"This revised agreement is a win-win which supports the local economy, strengthens environmental processes and conserves more of the Anglesea heath," Mr O'Brien said.

But Mr Barber said the deal was secretive.

"Everything to do with this deal that the government signed off today is secret," he said.

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