Mining giant concedes emissions ?blowout? at Queensland coalmine

Mining giant Anglo American has admitted to a "large blowout" in greenhouse gas emissions at a coalmine complex in central Queensland that is expected to cost it about $10m in carbon offsets.

Documents released under freedom-of-information laws show the multinational company conceded it had breached emissions limits ​​by at least 841,000 tonnes of carbon dioxide at its Capcoal mine complex in central Queensland.

The Australian Conservation Foundation, which obtained the documents, said it was the latest in a string of emissions breaches at the mine complex, which provides metallurgical coal used in steelmaking, since the introduction of the safeguard mechanism policy in 2016.

Annica Schoo, the foundation's lead environmental investigator, said the mining giant had consistently relied on loopholes in the policy. Had it been required to pay for emitting above its limit every year since 2016-17 it would face a carbon credit bill of about $50m, she said.

The safeguard mechanism was introduced under then prime minister Tony Abbott to prevent increases in emissions at large industrial sites by requiring polluting companies to buy carbon credits if they emit more than a limit, known as a baseline. In practice, many companies have been allowed to either increase their baselines or change reporting periods to avoid penalties.

"Capcoal is one of the worst over-emitters of the whole scheme," Schoo said. "It has never been under limits from 2016-17 to today and Anglo has had every single free pass possible given to it."

Capcoal comprises underground mines and open cut mines in the Bowen basin, inland from Mackay and Rockhampton. In a November 2020 email to officials at the Clean Energy Regulator, an Anglo American staff member acknowledged the company had a "large blowout" in emissions in 2019-20 due to what it described as a single event in which "gas needed to be vented for safety reasons".