The acquisition of Cascade Coal by White Energy was terminated on Tuesday afternoon after both parties were not able to reach agreement about matters associated with Mt Penny project at Bylong.
In an announcement to the Australian Securities Exchange, White Energy cited risks associated with “a degree of uncertainty” were not able to be addressed in the sale agreement.
The Bylong Valley Protection Alliance (BVPA) hailed the news on Wednesday as a “victory for common sense”.
BVPA Interim Secretary Craig Shaw said the group had been puzzled by the amounts of money to potentially change hands “when so many issues remained up in the air”.
“We’re hoping now that the scotching of the deal will mean a more measured approach can be taken,” he said.
“We’re seeing it as a kind of ‘circuit breaker’.
And the fight is not over for the Alliance.
It is known Cascade Coal has open cut coal resources at Mt Penny and the company has been granted Director General’s requirements from the NSW Department of Planning to proceed with detailed assessment of the site as a prerequisite to development consent.
“[Tuesday’s] announcement also makes it clear White and Cascade may well wish to re-visit the transaction if and when that development consent is achieved,” Mr Shaw said.
White Energy said significant comment in the local area on the effects of mining in the Bylong Valley and the results of the assessment will be relevant in determining the extent of future mining activities in the area.
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