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Updated at 5:25 am on 10 August 2012
Western Downs Council in southern Queensland council says it will allow Xstrata Coal to develop a coal mine only if it funds $A100 million worth of projects in the district.
The ABC reports Xstrata is seeking state approval to develop what would be the biggest open-cut coal mine in the southern hemisphere at Wandoan.
Mayor Ray Brown said it will have an enormous impact on the community and the company must pay.
Copyright © 2012, Radio New Zealand
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