ABC News
NSW Government to buyback Caroona mine exploration licence from BHP
Photo: The licence buyback will cost the NSW Government $220 million. (7.30)
The NSW Government will buy back BHP’s licence for the Caroona coal mine on the Liverpool Plains, ending a decade-long fight by farmers to shut down the project.
Key points:
- Commercial agreement to buy back Caroona mine exploration licence from BHP Billiton
- Buyback will cost the NSW Government $220 million
- Negotiations have begun to buy back controversial Shenhua Watermark mine
It will reimburse BHP the $100 million it paid for the licence, plus inflation, meaning the total price tag is around $220 million.
The exploration licence was issued in 2006 for underground coal mining covering approximately 344 square kilometres in the Liverpool Plains — an area of prime agricultural land.
The State Government said after careful consideration it determined the mine posed too great a risk to the future of the food bowl and its underground water sources.
The Deputy Premier and Nationals leader Troy Grant said the decision was in the best interests of the local community.
“The answer is pretty simple: the stress, pressures and justifications for this project to continue on some of our richest agricultural land in the Liverpool Plains just wasn’t sustainable,” he said.
“It didn’t make sense and it wasn’t viable for the company … it’s some of the prime agricultural land in the country.
“It should be returned back to agricultural enterprise. The manner in which we do that hasn’t been determined, but that’s the obvious purpose.
“It’s a decision that has calculated what they have already contributed — let’s not forget they paid $100 million for this privilege — and the amount we’ve arrived at is the value of that licence in today’s dollars.”
Former Gunnedah councillor and Liverpool Plains farmer Tim Duddy welcomed the decision.
“It’s a project that should never have happened, the licences should never have been issued,” Mr Duddy said.
“It has been an absolute cancer that has eaten away at the agricultural investment in the district.
“The community now can get on with pursuing agriculture the way it needs to be pursued.”
Sights turn to controversial Shenhua mine
Premier Mike Baird said negotiations had begun with the controversial neighbouring Shenhua Watermark mine to excise parts of the mining title, which encroaches onto strategic parts of the Liverpool Plains.
Greens MP and energy and resources spokesman Jeremy Buckingham said the buyback was a watershed moment for the state.
“It’s a historic moment. This is the beginning of the end of coal in NSW,” he said.
Mr Buckingham said the end of the Caroona mine was a good omen, suggesting the Shenhua mine might also be scrapped soon.
“Shenhua will never go ahead, it’s just a matter of time until the Government negotiates a buy-out for them as well.”
Leave a Reply
You must be logged in to post a comment.