THE NSW government has renewed the exploration licence for the Shenhua Watermark coal mine on the Liverpool Plains.
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The decision comes just over a year after the government bought back half the licence for $262m.
Resources Minister Don Harwin said the renewal allowed Shenhua to continue to undertake exploration, environmental management and rehabilitation, and community consultation activities.
However, it does not provide approval to commence mining.
“Last year, the prime agricultural land of black soil plains was protected from mining exploration after the NSW Government reached an agreement with Shenhua to scale back the exploration licence area,” Mr Harwin said.
“This government took action to stop mining on the Liverpool Plains, which struck the right balance between protecting the area’s farming future while encouraging investment in the resources sector. We will not release other parts of the Liverpool Plains for exploration.”
It took the government almost two and half years to make a decision on the renewal. Shenhua lodged the application on February 22, 2016.
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A spokesperson for Mr Harwin said the application had undergone a undergone a rigorous assessment, and the company’s work and environmental management plans were consistent with NSW Government policy and requirements.
“Before mining can begin, the company must apply for a mining production lease from the NSW Government and gain approval for a range of detailed management plans required in the project’s development consent,” the spokesperson said.
“In addition, the Federal Government must approve a biodiversity management plan and a water management plan before production can start.”
“The Watermark Coal Project would be subject to around 100 of the strictest environmental conditions in the country’s mining history.”
The government was criticised for buying back half the licence, as the mine’s footprint remained exactly the same. Others also questioned the decision, given the government could have legally halved the licence for free, given it had expired.