Glencore Xstrata has been forced to provide a $100,000 financial offset package to be spent on Sugarloaf State Conservation Area (SCA) in the Hunter Valley following mine subsidence damage.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The state government has also launched court action against Orica Australia over a grout spill in the reserve.
Minister for Planning and Infrastructure Brad Hazzard said expert advice was that subsidence incidents of the severity experienced at Sugarloaf were rare and difficult to predict, with very few previously recorded in NSW.
“While coal mining is vital to our State’s economy, the NSW Government sets rules for the good of the community and the environment and those rules must be followed,’’ Mr Hazzard said.
“We have been very clear on this – if companies don’t do the right thing, they’ll pay the price.
‘‘The NSW Government will use its full compliance and enforcement powers against any companies who act in a negligent or harmful manner.’’
Mr Hazzard said the prosecution was launched last Friday in the Land and Environment Court against Orica, which undertook the attempted remediation for colliery operator Oceanic Coal (owned by Glencore).
It entailed two charges – for the alleged damaging of the sugarloaf state conservation area and polluting of waters, each with a penalty of about $1 million Mr Hazzard said.
The Newcastle Herald has reported a chasm 120 metres long and 17 metres wide opened up in the reserve above the longwall mine after a large area of land subsided on October 2, 2012, but the public was never told.
Eight months later, workers trying to grout the extensive cracks in the conservation area spilt 75 cubic metres of grout into a stream.
Mr Hazzard said the government was negotiating with Glencore for an offset package of ‘‘in kind works or money’’ for the damage from the subsidence.
Work has already been undertaken to remediate the sites of grout spills with all grout removed from the 140 metres of the lowest end of the affected area and helicoptered out of the area for disposal.
Planning & Infrastructure has been advised by the companies that approximately $600,000 has been spent so far on remediation.
Oceanic Coal has accepted that no further longwall mining should occur in the immediate vicinity of the area affected by the subsidence incident and has amended its proposed extraction plan accordingly.
The Sugarloaf SCA subsidence has been used by local campaigners to argue for greater protection for The Drip, which they fear could suffer similar if mining is allowed in the adjoining area owned by Moolarben.
