Environmental groups say a "systemic failure" in the way mines are regulated led to Dendrobium coal mine being allowed to continue its unlawful use of water from creeks in the water catchment area for five years.
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On Tuesday, the Natural Resources Access Regulator announced that mine owners, the South 32 subsidiary Illawarra Coal Holdings Pty Ltd had agreed to pay a record sum of nearly $3 million to help restore Wollongong's wetlands and waterways under an enforceable undertaking.
As part of its operations, the Kembla Heights mine incidentally used surface water from creeks which flow into Sydney's drinking water catchment without a licence between 2018 and 2023.
This meant a huge volume of water was not available to flow into the surrounding creeks and the water catchment over that time, which is why the company agreed to pay the fine - the highest ever secured by the regulator.
The Lock the Gate Alliance, whose member made a complaint about the mine's water use which kicked off the investigation in 2018, has welcomed the enforceable undertaking.
However, the group's NSW Coordinator Nic Clyde said they were also deeply frustrated by how long it had taken for the government to act.
"This latest enforcement action by the water regulator highlights a systemic failure to protect the Special Area of the catchment for Sydney and the Illawarra's drinking water from damage by longwall coal mining," he said
"The size of the almost $2.9m contribution agreed to be paid by South32 is an indication of how serious this issue is and the fact that it was allowed to continue for years despite it being raised repeatedly within and outside of Government."
"This would not have happened if the NSW Government had heeded calls to ban longwall mining in the catchment."
Changes which have since been made to licensing in the state now mean that the mine can obtain a licence for taking surface water, which it applied for in March.
Mr Clyde said this was troubling for the anti-mining group.
"Rather than outlawing longwall coal mining in our drinking water catchments, the government earlier this year modified the regulatory regime to make legal the uncontrolled take of water from creeks and streams above this mine," he said.
Similar comments have been made by Greens MP Cate Faehrmann, who said the fine showed why mining has no place in Sydney's drinking water catchment.
"The scale of this undertaking speaks to the impact that this mining is having on water resources in Sydney's drinking catchment," she said.
"Investigations like these just go to show how vigilant we have to be in ensuring mining companies are acting in accordance with the law and responsibilities under their approvals.
"Illawarra Coal's application for a surface water licence must be rejected, especially considering that we're entering into a period of El Nino and likely associated drought conditions."
Kate McIlwain
For more than a decade, I've helped the Illawarra Mercury set the news agenda across the region. Currently I'm the paper's health reporter - covering the stories of Illawarra workers and residents in the wake of a global pandemic and at a time where our health systems are stretched to the limit.
For more than a decade, I've helped the Illawarra Mercury set the news agenda across the region. Currently I'm the paper's health reporter - covering the stories of Illawarra workers and residents in the wake of a global pandemic and at a time where our health systems are stretched to the limit.
