Wollongong weighs appeal as court rejects bid

PERTH (miningweekly.com) – ASX-listed junior Wollongong Coal has said it is disappointed with the decision by the Land and Environment Court to set aside the company’s appeal on orders from the New South Wales Planning and Assessment Commission (PAC).

The PAC in March this year released its review report in relation to the expansion of the Russell Vale colliery, which raised concerns about the environmental consequences of the project to the Sydney drinking water catchment area.

Concerns were also raised about the "significant uncertainty" around the impacts to water quantity and quality.

The review concluded that the social and economic benefits of the project were likely outweighed by the magnitude of impacts to the environment.

Wollongong Coal has applied to have the review report set aside.

The miner said on Friday that while it was disappointed with the court decision, the PAC report did not prevent the company from progressing the application for the Russell Vale underground expansion project.

While Wollongong is considering its appeal options in relation to the Land and Environment Court’s decision, the company will also consider its options to progress the application to expand operations at Russell Vale.

The expanded underground operation will increase production at Russell Vale from one-million tonnes a year to about three-million tonnes a year of run-of-mine coal and will upgrade the surface infrastructure and coal extraction from eight longwalls in the Russell Vale east area.

The project is expected to generate 300 jobs over its five-year approval period. It is 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.