Plans for the $1 billion Cobbora Coal Project near Dunedoo have been delayed for two-and-a-half years in light of the recent change in state government.
Project developers Macquarie Generation, Delta Electricity and Eraring Energy have cited the political power shift and a change in projected coal demand as reasons behind their decision to halt the project, developed by the former Labor government to provide coal for state-owned power stations.
The announcement has been met with positive responses from Mid-Western community groups concerned by the potential environmental effects of the mine and the speed at which the project was progressing.
Mid-Western Community Action Network (MWCAN) spokesperson Rob Duffy said he hoped the delay would allow the community to have more input into the judicial inquiry into the sale of state-owned electricity generators.
“As Cobbora is an element of that sale, we hope this decision will allow our community the opportunity to have some input,” he said.
Mr Duffy said a delay of more than two years meant ample time for a greater study into the effects of transferring water licences from downriver into the Cudgegong Valley.
“Our biggest concern about Cobbora was the haste in which it was approved. The rushed way it was being done didn’t give the community a real opportunity to make submissions or to comment on the development,” he said.
“Now hopefully with this delay the community should have that chance for comment.”
Mr Duffy said the group also hoped the Coalition government’s recent abolition of part 3A of the environmental act would give local council and the local community greater opportunity to make submissions on any planning within the region, including the proposed Mt Penny coal mine in Bylong Valley.
“Although the Department of Planning director general’s conditions for Mt Penny have already been released, there may still be a chance for change and one would hope that the new government will have second thoughts about the project altogether,” he said.
Mudgee District Environment Group chairperson Bev Smiles said the delay was to be expected given the significant questioning of the former Labor government about the proposal prior to their election loss, but the mine as a whole remained “a very bad proposal that shouldn’t go ahead at all.”
“There has never been a final development put to the Department of Planning for this mine, so a full range of environmental assessment reports have not been produced,” she said.
“There are a number of key issues regarding the mine’s impact on ground water and surface water in the Talbraga River catchment that would make this mine quite difficult to develop and these issues are yet to be addressed.
“Hopefully with this delay the whole proposal will disappear as there is nothing sustainable about it.”
Mid-Western Region Councillor Russell Holden said the developers’ decision to delay was “a sensible step.”
“Two-and-a-half years will give everyone including the developers some breathing space to address the water issues and work together through the processes of this project rather than working with a community who feel like they’re simply being dictated to without having any real input,” he said.
But Cr Holden urged Cobbora developers “not to stand still” and to use their newly acquired time wisely to consult with those concerned most by the project.
“Come to the council, come talk to the community and come and have some meaningful discussion with the Mid-West about how to resolve the issues they are facing rather than doing nothing for the next two-and-a-half years,” he said.