The economic assessment of the Rix’s Creek Extension Project, written by consultants KPMG, heavily overstates the benefits of the project while largely ignoring potential costs. Key flaws are: High coal prices. Unorthodox treatment of wages. Assumption that most external costs are fully offset or mitigated, with no consideration of risk around these impacts. Minimal detail

Economic assessment has been at the centre of controversial planning decisions on mining and coal seam gas projects in New South Wales (NSW) for several years. The Australia Institute welcomes the efforts of the NSW Government and NSW Department of Planning and Environment to improve the standard of economic assessment.

A new report by The Australia Institute shows that local businesses in unconventional gas regions in Queensland believe that gas development led to deterioration in their finances, local infrastructure, social connections and labor force skills.  The analysis of mostly gas industry funded research also highlights survey results by the CSIRO that found less than a

The Australian government has recently approved Adani’s Carmichael coal project. If built, it would be the biggest coal mine in Australia. This briefing note puts the vast scale of Carmichael into context.

The Australia Institute has made a submission on the Environmental Impact Statement of the Bylong Coal Project, a proposed new thermal coal mine located south of the Hunter Valley in NSW.  The economic assessment of the Bylong Coal Project is not suitable for decision making purposes. It lacks transparency, is based on flawed methodologies and

New polling shows strong support for a moratorium on new coal mines in two of the safest Liberal seats in the country.  The ReachTEL poll of 694 residents in Wentworth and 679 in North Sydney was conducted in the wake of an open letter, signed by 61 prominent Australian’s, called for a global moratorium on

A new report by Richard Denniss, Chief Economist at The Australia Institute, identifies an emerging economic risk of building ‘too many coal mines’. The report examines the potential economic harm flowing that a major expansion and construction of new coal mines can result cause, including: Lower coal prices associated increased supply (and associated reductions in

Too Close for Comfort : How the coal and gas industry get their way in Queensland. Examines the relationship between the Queensland Government and the fossil fuel industry. The report reveals a pattern of secrecy, a lack of accountability and transparency and a fast moving revolving door between the highest level of the bureaucracy and government, where political

The Airly Coal Mine project is a small, underground mine in the Capertee Valley, north of Lithgow, NSW. It is currently being assessed by the NSW Planning Assessment Commission (PAC). The economic assessment of the project is highly unreliable and its conclusion that the project would provide economic net benefit to the state has no

In 2015 the federal government gave $4b in subsidies to the mining and fossil fuel industry, in the previous six years the Australian government has spent $17.6b in support for these industries. Over 75% of the people agree that fossil fuel subsidies should be redirected to essential services.  

The Australia Institute has made a submission on the draft Environmental Impact Statement (EIS) for the proposed Abbot Point Growth Gateway Project. The EIS economic assessment is based on flawed economic analysis and ignores the most important economic questions around the project – is it likely to proceed and if so, is it in the

The NSW Government is currently accepting submissions on how to establish a community benefits fund from the potential development of a coal seam gas (CSG) industry in the state. A Discussion Paper has been published by the Division of Resources and Energy. The Australia Institute has written extensively on the economics of gas in Australia.

The Planning Assessment Commission for the Mt Thorley-Warkworth Continuation Project (Warkworth Project) has requested further submissions relating to a proposal to change the State Environmental Planning Policy (mining, petroleum production and extractive industries) (Mining SEPP). The current Mining SEPP requires consent authorities to give the “significance” of a resource the greatest weight in their assessment

The Australia Institute made a submission to the September 2015 Planning Assessment Commission hearing on the Springvale coal mine extension proposal. Key points: Economic assessment of the project fails to comply with NSW government guidelines and widely-accepted professional standards. No indication is provided as to the financial viability of the mine, making all claimed economic

The North East Gas Interconnector (NEGI) is a proposed gas pipeline between the Northern Territory and the eastern states. The project is strongly endorsed by gas companies, the Territory government and governments in other states, but analysis is lacking as to the actual benefits to Territorians and the rest of Australia.While there is a shortage

Details from a forthcoming Australia Institute Report  Since the EPBC Act commenced in July 2000, there have been approximately 5500 projects referred to the Minister under the environmental impact assessment provisions. Of the 5500 referred, around 1500 have been assessed as requiring formal assessment and approval. 12 projects have been refused approval. 9 projects have

The Australia Institute made a submission to the Environment and Planning Committee of the Victorian Legislative Council Inquiry into Unconventional Gas in Victoria. Our submission addresses three myths of Australia’s unconventional gas industry: That there is a gas shortage That expanding gas supply will reduce Australian gas prices That gas development creates lots of jobs

The Australia Institute made a submission to the Planning Assessment Commission for Newcastle’s Terminal 4 coal project. We oppose the Terminal 4 project. For the project’s capacity to be utilised an increase in the rate of coal extraction in NSW is required beyond the continuation and replacement of existing mines. Such increases are unlikely to

The Australia Institute made a submission to the NSW Department of Planning and Environment’s Integrated Mining Policy during its exhibition period. A problem with the NSW planning system relating to mine assessment in recent years has been economic assessment. There are two areas in need of reform: The quality of economic assessment and enforcement of

The Australia Institute made written and in-person submissions to the Planning Assessment Commission on Shenhua’s Watermark coal project in June 2014. The economic and agricultural assessment in the Environmental Impact Statement (EIS) for the Watermark project is flawed. It is based on biased modelling techniques and ignores the risks the project presents to the region’s

The Australia Institute made a presentation to the Planning and Assessment Commission for the Warkworth Continuation Project in Singleton on December 18 2014. Independent assessment has shown several times that the benefits of the Warkworth Project do not outweigh its considerable environmental and social costs. Judges, peer reviewers and the wider community have found deep

Queensland spends less on social services than the rest of Australia in per capita terms, despite being a large state with a growing population. In the major areas of health and education, Queensland spends less per person than any other state except NSW and Victoria – both of which benefit from large populations in relatively

This report begins by outlining the fast growing campus divestment movement, globally and in Australia, and explores the debate about the ‘moral university’ and fossil fuels. It then explores the first national poll to assess public attitudes towards universities’ ethics and investments, conducted following the national controversy around the ANU divestment decision. The survey data

The Australia Institute made a submission to the Planning Assessment Commission on the Springvale Colliery Extension Proposal. Our submission relates to the various economic assessments and reviews of economic assessments in relation to this project. Controversy has surrounded the economic assessment of the Springvale project, resulting in various assessments, submissions, responses and reviews. None of

Mining plays a small role in the economy of the Southern Highlands. The major employing industries are service industries, manufacturing and construction. While tourism is not separately counted in most statistical publications, the strong employment numbers in retail, accommodation, food and transport industry categories suggest it plays a strong role. Agriculture is a relatively small

The Deloitte Access Economics (DAE) assessment of the economic impacts of the Mt Owen continued operations project has significant flaws which overstate the value of the project and mislead decision makers. The assessment does not make clear the costs and the benefits of the project to NSW, contrary to Director Generals Requirements. Instead, it compares

The Australia Institute made a submission to South Australia’s Natural Resources Committee Inquiry into unconventional gas. Our submission focuses on the potential net economic outcomes to the region and the rest of the state. The net economic effects of gas development in South Australia are likely to be small: There would be minimal impact on

The Australia Institute made a submission to the Select Committee inquiry into Certain Aspects of Queensland Government Administration related to Commonwealth Government Affairs. Our submission focused on the use of economics in major project assessment processes. Approval processes for major projects in Queensland have seen the misuse of various tools of economic assessment. In particular

In December 2014, the Queensland Government sought submissions on the Preliminary Documentation around two related proposals to expand the coal port at Abbot Point. The Australia Institute made a submission on the Preliminary Documentation. Our submission showed that the Preliminary Documentation is inadequate as it contains no cost benefit analysis and no economic assessment of

The draft NSW Minerals Industry Action Plan presents recommendations that maximise the interests of the minerals industry. While this is not surprising, the aims of the NSW government should be to maximise the welfare of the community rather than any particular industry. In some areas, the interests of the industry and the government are aligned,