Australian ministers to meet over GVK coal mine stand-off

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The Queensland and Australian federal governments are all set to hold a crisis meeting on Thursday in Sydney to discuss the dispute over India's GVK Group's huge USD 6.36 billion Alpha Coal mine project.

Queensland's Deputy Premier Jeff Seeney and Environment Minister Andrew Powell is expected to meet with federal Environment Minister Tony Burke this morning, according to AAP report.

The tussle broke out after Burke halted the approval process for the joint venture, saying Queensland had failed to properly assess environmental risks.

He said he can't sign off on the mine, part-owned by billionaire Gina Rinehart and Indian Conglomerate GVK, because Queensland's assessments were dangerously deficient and have failed to look at run-off threats to the Great Barrier Reef.

The Queensland government insists it has carried out rigorous environmental assessments, and the federal government is holding up the project for political reasons.

The billion dollar coalmine and railway proposed by Indian company GVK and Gina Rinehart's Hancock Prospecting was given nod last week by the Queensland government but it still needed approval for a new berth at Abbot Point before it cleared all state hurdles.

The dispute also drew attention from the Prime Minister Julia Gilalrd who reportedly lashed out the Queensland government over its handling claiming it had shaken investor confidence in the state.

In a sharply worded letter sent to Queensland Premier Campbell Newman, Gillard also accused him of threatening the Great Barrier Reef by cutting corners on the proposed Galilee Basin development in the coal-rich state.

The Alpha project which is expected to generate 4,000 jobs at peak is being run by Hancock Coal in which 79 per cent owned by Indian infrastructure giant GVK and 21 per cent owned by Gina Rinehart, the world's richest woman.

"Queensland's decision has immediately put at risk community and business confidence," she wrote to Newman.

Gillard upped the ante by writing to every other state and territory leader on Wednesday night, warning Queensland's actions were 'inconsistent with Australia's national and international environmental obligations' and would threaten national plans to cut approval times.

"Rather than fast-track and streamline environmental approvals, Queensland's current approach will only serve to undermine confidence, delay approvals and increase uncertainty for project proponents," she said.

"The Commonwealth will, as a result, work directly with Alpha Coal to complete the assessment process and resolve any remaining uncertainties for the project," she wrote.

"I would urge you to reconsider the approach taken to the Alpha Coal project." She said the assessment by Queensland's Co-ordinator General Barry Broe was 'unacceptable' and contained errors about the impact on green turtles, dugongs and dolphins.