A government department advising South32 what to write in its application for a mine expansion "gave the perception of unfair influence", according to the chair of the Centre for Public Integrity.
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Emails between a senior bureaucrat in the Department of Planning and Environment and South32 discussed issues around its Dendrobium mine application.
"Given the heavy reliance of the justification for the project on supplying BlueScope, a statement saying the coal meets BlueScope specs (or can meet specs with blending) would be useful," the bureaucrat said in one email.
Nic Clyde, NSW coordinator of environmental group Lock the Gate said the department was providing "coaching" for South32.
A department spokesperson said seeking more information was "common practice" and in this instance they were requiring South32 to address the concerns of the Independent Planning Commission, which knocked back the project.
However Centre for Public Integrity chair and former Supreme Court Justice Anthony Whealy said the emails raised concerns.
"One view of it [they] could constitute giving unfair assistance to what should be in the application to make it more favourable to the government," he said.
He said that, in his opinion, the actions were not something that needed to be addressed by the Independent Commission Against Corruption.
"I don't think it necessarily crosses the line but it certainly gives a very bad impression to the community," he said.
"I think from a political point of view the government surely would not want to leave that impression in the public's mind."
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