Indian energy company Adani confirmed this week its board has made the final investment decision to proceed with a $16.5 billion coal mine in central Queensland.
Townsville Mayor Jenny Hill said she was feeling optimistic about the development.
“There’s a mood of excitement, there’s been very little negative backlash and it’s the same in places like Mackay, Rockhampton and Bowen,” Mayor Jenny Hill told news.com.au.
“The only negative backlash I have had has been from the cafe latte set in inner Sydney.”
However, the final go-ahead rests on whether the Northern Australia Infrastructure Facility (NAIF) will provide a $1 billion concessional loan, as per Adani’s request, to fill part of the $3.3 billion funding shortfall that remains.
Queensland Premier Annastacia Palaszczuk said the mine would give regional Queensland a boost.
“Opening up these three regions for development has the potential to support thousands of new jobs that are needed in regional centres along the coast as well as in outback Queensland,” the Premier said.
Speaking to the Australian Financial Review, an Adani spokesperson said the proposed concessional loan was a key factor to the mine's development.
"If we don't receive that loan then we are going to have to look at our options," the Adani spokesperson said.
The decision is another milestone for the Galilee Basin project, which was initially proposed by Adani seven years ago. Last month the Queensland Government also offered Adani a royalty deferment deal which would see Adani pay $2 million a year in royalties once the $21 billion project starts operating; an amount that would then increase after several years.
Premier Palaszczuk said the deal established a framework that would encourage job creation.
“Every cent of royalties will be paid and any deferred royalties will be paid with interest," Ms Palaszczuk said.
“This is about delivering jobs and getting those royalties so we can continue to invest in frontline services, infrastructure and renewables.”
Federal Opposition Leader Bill Shorten said he welcomed job creation but criticised the coalition's financial support for the mine.
"I welcome the jobs but like all viable jobs the business should stand on its own without the commonwealth taxpayer taking the risk," he said.
Adani have stated that the mine will produce 10,000 jobs through both direct and indirect employment. The Land Court of Queensland rejected this initial claim, but then accepted the evidence of Adani’s expert witness, Dr Jerome Fahrer of ACIL Allen, who said that in net terms the Adani mine would increase average employment by about 1,200 jobs in north Queensland, and create 1,464 jobs Australia-wide.