The NSW Department of Planning is considering Xstrata’s development application to expand the mine’s lifespan by 20 years and double annual production to 20 million tones.

The mine is expected to employ an additional 401 workers.

In negotiations over a Voluntary Planning Agreement (VPA) with Xstrata, Mid-Western Regional Council has requested:

• $1.8 million to upgrade capital roads projects;

• $1 million for community infrastructure capital projects;

• A one-off payment of $1 million for a Council-owned community infrastructure project;

• A $1 million road maintenance contribution to be paid in 10 equal installments starting four years after the first capital roads payment;

• A $1 million contribution towards maintenance of community infrastructure, to be paid in 10 equal installments.

Xstrata has offered Mid-Western Regional Council $2.3 million, arguing it has already made payments for roads and community projects, including current commitments to the youth worker program and subdivision requirement, and that additional rates paid over the years should be subtracted from the VPA.

Xstrata has also argued that the mine expansion is not a new development, but a consolidation of existing consents.

However, in his report to last week’s council meeting, Mr Bennett said Xstrata’s previous contributions had been used to upgrade and maintain infrastructure to cater for community needs before the influx of 401 additional workers.

“Xstrata needs to compensate this community on the demands on infrastructure services in our community,” he said.

“In short, Xstrata need to continue to support and recognise their role in the community.”

Mr Bennett said the demands on council services, especially Ulan and Cope Roads, would be very high.

“These roads are already at substandard levels for the volume of traffic,” he said.

“Although council is spending vast sums of money to improve these assets, the additional employees and activities associated with this new development will place even greater demands on these council roads.”

Mid-Western Regional Council has authorized Mr Bennett to continue negotiating with Xstrata.