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The ACF had sought to establish a landmark climate change case in Australia, arguing approval of the proposed mega coal mine in Queensland's Galilee Basin was inconsistent with the country's international obligations to protect the Great Barrier Reef.
The case had gained more urgency since being lodged in November last year, with the reef experiencing its worst recorded bleaching event, which scientists say may have killed off a fifth or more of its corals in one hit.
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| Federal court rejects environmental challenge against Adani Carmichael mine. Stefan Armbruster |
"At their core, these challenges have been about stopping investment and jobs as part of a wider activist campaign against mining," the Indian-based miner said, adding that a recent report by PwC had put the costs of delay at about $3 billion.
Matthew Canavan, federal minister for resources, said on Twitter that the decision was "good news for jobs".
The conservation group, however, vowed to keep fighting to prevent the mine - with a production capacity of as much as 60 million tonnes a year - from going ahead.
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| Adani's giant coal mine in the Galilee Basin aims to export mainly to India if it proceeds. Photo: NYT |
"It is extraordinary that in 2016 a federal Environment Minister can argue in court that a mega-polluting coal mine will have no impact on the climate and the Great Barrier Reef," she said. "We'll do everything we can to stop this mine."
Before the verdict from Justice Griffiths, ACF chairman Geoff Cousins predicted more challenges against coal mines such as Adani's.
"Win or lose ... these issues will become and more prominent as time goes on," Mr Cousins said.
Mr Cousins said groups such as ACF were pinning their hopes on Josh Frydenberg, the new federal environment and energy minister, to take a different stance on climate matters.
"Josh Frydenberg has a great opportunity to lead," Mr Cousins said. "He's certainly aware of all these issues."
Mr Frydenberg replaced Greg Hunt after the July 2 election returned the Turnbull government to power.
ACF has said Carmichael would be Australia's largest mine, covering more than 45,000 hectares in size and producing as much carbon dioxide annually as New Zealand.
A spokesman for Adani said the company is ready to proceed with the mine "pending the resolution of a small number of outstanding legal challenges".
"[I]f those issues are finalised, construction can commence in 2017," he said.
The parties have seven days to agree on the legal costs of the case, ACF said.
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