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Australia dumps India coal export option

MELBOURNE, Dec. 10 (UPI) -- Wary of a backlash from "green" voters in Australia's 2010 elections, Victoria state has ditched plans to mine and export carbon-intense brown coal to India.

The Press Trust of India reported Thursday that Victoria state Energy Minister Peter Batchelor revealed the decision after Australian media revelations that Melbourne's Exergen was to begin a $1.5 billion coal export scheme following payments for an exclusive meeting with Premier John Brumby while their proposal was receiving government consideration.

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Under its proposal Exergen was to mine, dry and ship 12 million tons of Victoria Latrobe Valley brown coal to India for use in power generation. The media reports about exporting low-grade brown coal to India prompted criticisms that Victoria state was putting profits ahead of its responsibility to curb greenhouse gas emissions.

A spokeswoman Batchelor, Emma Tyner, told reporters, "The government has no plans to allocate coal to Exergen or to any other company outside of a competitive tender process."

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