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Litigation

Australian court says mine approvals must consider climate harm

3 minute read

May 27 (Reuters) - An Australian court ruled on Thursday that the country's environment minister has an obligation to children to consider the harm caused by climate change as part of her decision-making in approving the expansion of a new coal mine.

The Federal Court of Australia made the ruling in response to a class action suit brought by eight teenagers that argued the expansion of Whitehaven Coal Ltd's (WHC.AX) Vickery Project in New South Wales (NSW) state would contribute to climate change and endanger their future. read more

In his ruling, Justice Mordecai Bromberg said that the minister could foresee the possibility of future harm caused to the children in the case by the increase in carbon dioxide emissions from Whitehaven's expansion and therefore must recognise a so-called duty of care, or moral obligation, to the children, when approving it.

Ava Princi, 17, one of the students that brought the suit, said she was "thrilled" by the judgement because it was the first of its kind.

The logo of Australia's biggest independent coal miner Whitehaven Coal Ltd is displayed on their office building located in the north-western New South Wales town of Gunnedah in Australia, August 15, 2017. REUTERS/David Gray

"We understand it is the first time a court of law, anywhere in the world, has ordered a government to specifically protect young people from the catastrophic harms of climate change," she said.

However, the court stopped short of issuing an injunction to prevent the minister from approving the expansion.

Whitehaven (WHC.AX) welcomed the decision not to issue the injunction and said it would work towards getting the federal environment protection approval for the expansion, sending its shares 3% higher to a more than one-month high.

The NSW regulator approved the expansion in August, from which Whitehaven plans to increase coal extraction by nearly 25%, but will hold off on making any final investment decision this year.

Reporting by Savyata Mishra in Bengaluru

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