Olstan Auger Mine abandoned!

The proposed Olstan Auger Mining Project near Blackalls Park in Lake Macquarie has been officially confirmed as dead. In a Media Release this afternoon, Centennial Coal has confirmed that they will be withdrawing the application for the development which would have produced a relatively minor 1.5 million tonnes of coal over the 3 year life of the project.

Having had discussions with the General Manager earlier today, I was pleased that the confirmation of that understanding was forthcoming.  Centennial have based their decision on the commercial viability of the project which all agreed was marginal from the start.  The environmental requirements and the additional standards which Centennial wished to apply so as to address community concern have shown that the project was not worth pursuing.

This is great news for all those people in the local area who were very concerned for the health and amenity of their area, as well as for the natural environment which would have been significantly impacted by what I believe would have constituted a hybrid open-cut/auger mine. 

We must now make sure that the definition of an open-cut mine, banned in Lake Macquarie, incorporates mining techniques such as was proposed.

Text of the Media Release below:

Friday July 17, 2009

PROPOSED OLSTAN PROJECT

Centennial Coal has announced its decision to withdraw the project application for the proposed

Olstan Auger project following its review of the latest technical studies.

“Centennial and its consultants have been conducting technical studies to ensure that the

project would comply with both the statutory environmental standards and our own company

standards”, said Katie Brassil, Centennial Coal’s Group Manager External Affairs.

“As studies have progressed there have been a number of concessions to the mine design in

order to address potentially unacceptable impacts on the environment and community. These

changes have increased both capital and operating costs and the project is no longer viable”, Ms

Brassil continued.

In April this year, Centennial lodged a Project Application including a Preliminary Environmental

Assessment (PEA) with the Department of Planning for the proposed Olstan Auger Project.

Olstan was to be a small-scale auger-mining project recovering less than 1.5mtpa of remnant

coal over 3 years.

Centennial has consistently highlighted that the onus is on the company, as project proponent,

to demonstrate, using scientifically based evidence and fact, both the benefits and impacts a

proposal may have for the local community.

Therefore, Centennial has been progressively working on the range of technical studies required

to compile the final comprehensive Environmental Assessment for the project. The assessment

process also requires concurrent community consultation while finalising the technical studies to

ensure informed and balanced decision making on the project.

“Centennial has followed the government’s rules and processes, and while the proposed project

has garnered opposition, Centennial has remained focussed on the planning and assessment

process and the facts, and this is the basis for our decision to withdraw the project application”,

Ms Brassil explained.

Olstan was intended to supply coal to fill current contracts with the local power stations.

Therefore, other options will now be investigated to address any potential shortfall. These

options may include increasing production at an existing operation or sourcing coal from another

location.

Centennial’s long-term future in the Lake Macquarie area remains with our existing operations

and the Awaba East and Mandalong South underground projects.