Mid-Western Regional Council has demanded that Moolarben Coal contribute more than $16 million to community and roads projects as part of the conditions for approval of its stage 2 development.
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Council’s submission to the Department of Planning proposes Moolarben Coal should pay a lump sum of $2.5 million for community infrastructure projects and a further $10.8 million over five years to upgrade and maintain the Ulan Road.
The submission also argues that Moolarben Coal should carry the cost of upgrading a further two sections of the Ulan-Wollar Road at an estimated cost of $2.75 milllion.
In a VPA negotiated three years ago as part of stage 1 approval, Council agreed to a lump sum payment of $1.36 million from Moolarben Coal.
However, the submission endorsed at Wednesday’s council meeting states that this amount is “outdated and totally inadequate”.
As a result of expansion of Moolarben Mine, traffic is expected to increase on Ulan Road by 8 per cent, on Cope Road by 6 per cent and on Ulan-Wollar Road by 23 per cent.
The submission states that council’s position is “not negotiable”.
“Council’s experience of the VPA process is that it has left council at a considerable financial disadvantage on too many occasions,” general manager Warwick Bennett said.
Mr Bennett said it was “socially unjust” for the average ratepayer to have to subsidise large corporations...
“There has already been some cost shifting across the rate base, with the community having to pick up the tab for the cost of upgrading facilities and infrastructure that have been required as a direct result of the increased pressures and demands generated by the mining cluster at Ulan.”
Mr Bennett said it was “socially unjust” for the average ratepayer to have to subsidise large corporations who should be required to cover all the costs of operation, including impacts on local infrastructure and community facilities.
The submission added that the adverse impacts on local roads from extra traffic generated by stage 1 of Moolarben mine had not been adequately addressed in the stage 2 proposal.
Moolarben contributed a total of $2.5 million for local roads upgrades and maintenance as part of its commitment from stage 1.
Stage 2 of Moolarben will include a new open cut mine and two new underground mines, increasing coal production 17 million tones a year from both stages.
Moolarben would employ 122 staff in addition to the 317 already employed.
The project will require the relocation of the Ulan-Wollar Road, Carrs Gap and Murragamba Roads.
In addition to the payments for roads and public infrastructure, council wants Moolarben to pay compensation of at least $110,000 a year for rates lost as a result of land set aside as environmental offsets becoming unrateable.
Council’s submission also addresses concerns over noise and blasting, air quality and rehabilitation of mined areas and calls for Goulburn River Drip Gorge to be included in the Goulburn River National Park.
