Wollongong receives conditional approval for Russell Vale coal expansion

PERTH (miningweekly.com) – Embattled coal miner Wollongong Coal has given no assurances about the future of its Russell Vale operation, in New South Wales, despite receiving approval from the Planning Assessment Commission (PAC) to expand the underground operations, subject to conditions.

Wollongong in September last year placed the Russell Vale mine on care and maintenance, in the face of difficult operating and financial conditions.

Despite this move, the company continued to seek government approval to expand the underground operation, with the aim of increasing production at the mine from one-million tonnes a year to about three-million tonnes a year of run-of-mine coal and upgrading the surface infrastructure and coal extraction from eight longwalls in the Russell Vale east area.

In its review of the application, the PAC said last week that while the expansion project was considered relatively small, ranking fiftieth out of 56 producing coal mines in New South Wales, the social and economic benefits of the project outweighed residual costs attached to environmental monitoring, and added that it was in the public’s interest to approve the project, subject to conditions.

The project was expected to generate 300 jobs over its five-year approval period. It was expected to contribute about A$23-million to government through royalties and A$85-million through capital investment and other direct and indirect flow-on effects.

Wollongong on Monday acknowledged concerns raised by the PAC regarding the environmental impacts of the expansion project, but added that its proposal was underpinned by technical studies which addressed the concerns of the previous review.

“Given the significant economic and employment challenges currently facing the Illawarra, Wollongong Coal continues to consider its assets a critical component to an integrated, long-term economic plan for the region,” the company said in a statement.

“While the PAC is correct in its assertion that the project is short term in nature, its approval was part of Wollongong Coal’s longer-term strategy to re-establish a stable and sustainable operation with benefits extending far beyond those of the expansion plan.”

Wollongong stated that it would review the PAC’s report in detail before determining its future course of action at the Russell Vale mine.