The investigation into whether Wollongong Coal is a “fit and proper person” to hold a mining licence is a first for New South Wales, the lawyer who worked on the complaint said.
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Sue Higginson, CEO of the NSW Environmental Defenders Office, said it was the first test for provisions inserted into the Mining Act in 2013 – after the Independent Commission Against Corruption’s investigation of former Labor figures Eddie Obeid and Ian Macdonald.
“The minister can in fact cancel titles if he or she is of the opinion they are not of good repute, good character, financially sound and technically competent,” Ms Higginson said.
“Parliament clearly intended to send a strong message about who can exploit the resources of NSW.”
On Friday morning – two months after the formal investigation was launched by the NSW Resources Regulator – Wollongong Coal finally told the stock exchange about the development.
This followed the Mercury publishing news of the investigation, a complaint being made to the Australian Securities Investments Commission (ASIC), and the issue being raised at the NSW Budget Estimates committee.
It is now clear the investigation didn’t begin until the government split the mining regulation unit off from the business development unit, both within the Department of Industry, in July.
On Wednesday Resources Minister Anthony Roberts told the NSW Budget Estimates committee splitting the units would improve public confidence.
“The move is very much designed to ensure a consistent and responsive regulatory approach and to provide increased transparency and community confidence,” Mr Roberts said.
“I want to make it quite clear the importance of having a separation of powers here between those that develop the industry and drive it and those that enforce compliance and regulate the industry.”
The Department confirmed this was the first “fit and proper” investigation.
In its statement to the ASX, Wollongong Coal (WCL) claimed it was not “appropriate” to comment on the investigation.
“However, WCL assures of full co-operation with the investigation,” it said.
“WCL, unequivocally, considers the allegations to be completely baseless.”
The statement came only after anti-coal group Lock the Gate wrote to the corporate regulator ASIC with details of the investigation.
Lock the Gate campaigner Nic Clyde said with WCL proposing to expand under the drinking water catchment, the “stakes are high” and the company needed to be investigated.
