London-listed mining giant Glencore has been denied a project in Australia to capture CO₂ from a coal-fired power plant, reports Bloomberg News.

According to local authorities in the state of Queensland, the project is ”not suitable to proceed due to potential impacts on groundwater resources in the Great Artesian Basin,” reads a ruling on Friday.

The Great Artesian Basin is one of the world’s largest freshwater reservoirs.

Glencore planned to capture 110,000 tons of CO₂ with the project, and the technology would have shown the potential to reduce emissions from the many large emitters in the area, which is home to cement, aluminum and fertilizer factories.

”It’s a missed opportunity for Queensland and sends a mixed signal in terms of emissions reduction,” says Glencore, which believes it will have a ”far-reaching impact on the commodities sector”.

Glencore shares fell 1% to 479 pence on the London Stock Exchange on Friday morning.

English edit by Kristoffer Grønbæk