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Plans to change environmental laws to prevent challenges to such projects as the Adani coal mine will struggle to pass the Senate and lack the support of the Queensland Labor government, prompting Prime Minister Tony Abbott to ramp up pressure on the federal opposition.
Eager to put its internal divisions aside and get back on track, the Abbott government will soon introduce legislation to abolish section 487 of the Environment Protection and Biodiversity Conservation Act so that only people directly affected by mining projects can challenge the projects in the courts.
As it sought to do so, internal divisions continued to fester with Senate leader Eric Abetz saying colleagues who were leaking were "gutless"
"If somebody is gutless and in breach of the rules one really wonders why a journalist even bothers to repeat comments from such an individual."
The government moved to refocus on jobs and economic growth and is using the Adani situation and Labor's stated concerns over the China-Australia Free Trade Agreement and its provisions which allow the importation of Chinese workers.
It is moving on the EPBC in response to little-known environmental organisation, the Mackay Conservation Group, blocking approval of Adani's $16.5 billion Carmichael mine in Central Queensland . Qld won't back change
Queensland mine minister Anthony Lynham said he would not support any watering down of the EPBC Act, but conceded it needed to become more efficient to fast-track development approvals.
The Palaszczuk government is desperate for the mega-mines in the Galilee Basin to be built to help kick-start the state's lagging economy and fill government coffers with royalties.
Dr Lynham said he was still seeking more details of the Abbott government's proposed changes to the Act.
"Generally speaking, I would not support any watering down of environmental protections," he said.
"The Palaszczuk government supports job-generating resources projects that balance social and environmental impacts with economic development.
"But I would prefer to see government and industry working together to make the regulatory framework for mining as efficient as possible. Potential investors in the resources sector need certainty and Queensland needs the jobs their investment will deliver." Senate support unclear
On Wednesday, at least two Senate crossbenchers Nick Xenophon and Glenn Lazarus indicated they would not be backing the government's quick fix.
If one more follows, the government will not get the change through the Senate. Senator David Leyonhjelm said he was inclined to support the government.
Mr Abbott said the fault would be all Labor's.
"This is an issue for Labor, not for the cross bench and I say again where does Bill Shorten stand? Does he want the Carmichael mine to go ahead? Or does he not? Does he want the China-Australia free trade agreement to go ahead or does he not?," he said.
"The only time the crossbench has power is when the Labor Party is standing in the way.
"All projects in this country have got to pass strict environmental standards but once they've passed those standards they should be allowed to go ahead. They shouldn't be subject to endless legal sabotage because the law gives green groups an unusual level of access to the courts."
Federal Labor slammed the move as a "pathetic attempt" by the Government to distract from its political woes and said the hold-up with Adani was "a rash reaction to the government's incompetence and failures being borne out in the courts".
"The government has been caught out for not properly managing the approval process for the Adani Mine under the Act," said shadow environment minster Mark Butler and shadow attorney-general Mark Dreyfus.
The Queensland government earlier this month referred Adani's expansion of Abbot Point coal terminal to federal Environment Minister Greg Hunt for approval.
Adani's $16.5 billion Carmichael mine - which is still being held up by two different court cases, is still waiting for final environmental approvals and mining lease. The Indian energy giant also has to raise $10 billion in finance for the project.