Protestors have condemned the Queensland government's approval of licences for the massive $22 billion Adani coal mine as “environmental vandalism”.
The financial analysts have also expressed doubts about the project’s current viability.
Licences granted on Sunday are a victory for the Indian miner Adani after years of delays, but several legal hurdles are still in the way.
About 200 people protested outside Queensland parliament against the decision on Monday morning chanting, “Coral not coal”.
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“This insanity, this environmental destruction on an unprecedented scale, this mass extinction, this economic stupidity,” said Greens Queensland senate candidate Andrew Bartlett.
“This must stop, it must not go ahead, not just for Queensland and the reef but for the planet and the future.”
Approval for the coal mine in central Queensland coincides with extensive coral bleaching on the Great Barrier Reef blamed on climate change.
“The Great Barrier Reef Authority has put it at a level three threat," Millie Anthony from the Australian Youth Climate Coalition said.
"That's a serious concern for my generation and future generations to come.
“Australians and Queenslanders want a healthy Great Barrier Reef and the Palaszczuk [Queensland] government was voted in on a mandate to protect the Great Barrier Reef.
"By signing off on a 99-year mining license they’ve done the exact opposite.”
There is a feeling of betrayal too in Australia’s neighbours in the Pacific - who are threatened with innundation from rising sea levels and unprecedented natural disasters - after promises at the Paris COP21 climate talks last year to limit global temperature rises.
“This mine means that Pacific islands will be submerged with the amount of carbon emissions produced from it,” 350 Pacific's Lisa Jameson said.
“Islands like Tokelau, Kiribati, Tuvalu, Marshall Islands, Federated States of Micronesia will be extremely impacted.
“This is a huge betrayal. We look at Australia as a big brother looking out for our best interests and they haven’t.”
The Queensland government says construction of the Adani's mine could begin as early as next year, generating about 5000 jobs, injecting billions into the economy over its life span.
The government said the reef would be protected but there are several hurdles still in the way.
Adani has already invested more than $1 billion into the project but needs more financing.
Some major banks have pulled out and the coal price is at 10-year low.
“The life of the mine would be over about 90 years, so over the course of time we would see perhaps the price of thermal coal rise beyond the current level of US$54 a tonne to a point where it would become profitable for the mine to proceed,” Fat Prophets' David Lennox said.
“Of course when that time comes, Adani would like to have the mine in operation rather than just commencing construction.
“Overall we think the company will find financing but it will take a bit of work.”
Opponents hope a legal challenge by the Australian Conservation Foundation and a native title case will stop the mine first.
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