Coal & Allied takes next step to consider Mount Pleasant Project

Coal & Allied is taking another step ahead of a decision to build the Mount Pleasant Project, a greenfield thermal coal mine with an existing development consent near Muswellbrook in the Upper Hunter Valley.

General Manager Studies, Antony Bijok, said Coal & Allied had announced earlier this year it would pursue all remaining approvals and consents needed following the breakthrough long term framework agreement reached for the Port of Newcastle.

"The Mount Pleasant Project is not a new proposal and has always been in our plans," said Mr Bijok.

"Coal & Allied was granted a development consent for the Mount Pleasant project in 1999 after an Environmental Impact Statement.

"After recent progress on port capacity, Coal & Allied announced in January it was reviewing its feasibility study, to look for cost efficiencies and identify any modifications that may be required to the existing consents and approvals."

Coal & Allied has now applied to the New South Wales government to make modifications to its existing development consent, under Section 75W of the Environmental Planning & Assessment Act, 1979.

The proposed modifications are:

An infrastructure "envelope" within the mine instead of the existing specific locations, to allow greater flexibility to respond to engineering and environmental constraints.
The option of a conveyor to transport product coal to the Muswellbrook - Ulan Rail Line via the Bengalla Mine rail loop, as an alternative to the rail line facilities directly connecting to the Muswellbrook - Ulan Rail line in the existing development consent.
Modification of the development consent boundary to allow for these changes, and for minor administrative changes.
Extension of the consent life by approximately two years, to 2022.

"The Mount Pleasant Project can be developed using the existing development consent, however the proposed modifications provide options that, subject to further engineering assessments and commercial agreements, may enable reduced capital costs, efficiencies in operations and reduce the footprint of disturbance," said Mr Bijok.

"In addition, a referral will be lodged under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) to determine whether approval will be required under this Act, which commenced after the State development consent was granted.

"The final decision on whether to proceed with the Mount Pleasant Project will take into account factors including the results of the proposed State modification and Commonwealth EPBC Act referral, and the Federal Government's proposed resources tax.

"The project approval work currently being undertaken for Coal & Allied's Hunter Valley mines is necessary, but we will not be able to invest major project capital until the details of the government's proposed extra tax become clearer and we can make a proper evaluation of the full impact."

The Mount Pleasant Project would have significant benefits for the Upper Hunter Valley and New South Wales.

"The proposed mine will create around 700 extra jobs at the peak of construction and require around 300 people during operations," said Mr Bijok.

"Our neighbouring mine at Bengalla employs 55% of its employees within the Muswellbrook shire, and it's our intention that Mount Pleasant would be developed in a similar manner."

First production is being targeted in 2014, building to the existing extraction consent of up to 10.5 mtpa ROM.

The Environmental Assessment for the proposed modification is expected to go on public exhibition for a period to be determined by NSW Department of Planning, during June or July.

Media contact: Matthew Klar 3029 1168/0457 525 578

Media release - Coal & Allied takes next step to consider Mount Pleasant Project [PDF: 30 KB]