The NSW Government has given the green light to Wollongong Coal’s massive underground expansion project, recommending it be given approval to mine under the Sydney water catchment area.
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The Russell Vale project, which has been scaled-down significantly since it was lodged five years ago, would allow the troubled Illawarra mining company to extract 4.7 million tonnes of coal from eight longwalls over a five-year period.
In its recommendation, the government has acknowledged the potential environmental risks which include ‘‘subsidence-related impacts on nine uplands swamps, which cover a total of 17.51 hectares, 51 per cent of which would be directly undermined.
There could also be ‘‘potential impacts on local and regional surface water and groundwater resources’’ and ‘‘potential flooding impacts along Bellambi Gull and Bellambi Creek’’.
However, the planning department believes these risks ‘‘can be adequately mitigated’’ by commitments from Wollongong Coal, and conditions set by the department.
‘‘The department has weighed the residual impacts of the preferred [underground expansion project] against its social and economic benefits,’’ the recommendation says.
‘‘This assessment has found that the preferred [project] would result in significant social and economic benefits for both the local area as well as the state as a whole.’’
These benefits include employment of 219 existing workers, 81 new mine workers, 100 people during construction and the ‘‘indirect’’ employment of nearly 1500 people, the government says.
The project would also be worth $85 million in capital investment, $34 million in state royalties and $110 million to the federal government in tax revenue.
The project will be assessed for final approval by the NSW Planning Assessment Commission (PAC).
Last month, the PAC gave Wollongong Coal approval to extend one longwall - ‘‘Longwall 6’’ - at Russell Vale Colliery despite considerable opposition from residents, Wollongong City Council, Sydney Water Catchment Authority as well as other government agencies.