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(Alliance News) - South32 Ltd on Friday noted an assessment report from the New South Wales Independent Planning Commission has been released recommending against approval of the Dendrobium Next Domain project at its Illawarra metallurgical coal operations in Australia.
The London and Johannesburg-listed diversified miner was seeking planning approval to extend the life of the mine until the end of 2048 and extract an additional 78 million tonnes of run-of-mine coal from two new areas near Avon and Coredaux Dams.
However, in its report the Commission highlighted significant concerns over the proposed mine design, including its significant risk of "long-term and irreversible damage to Greater Sydney and Illawarra's drinking water catchment".
"The level of risk posed by the project has not been properly quantified and based on the potential for long-term and irreversible impacts - particularly on the integrity of a vital drinking water source for the Macarthur and Illawarra regions, the Wollondilly Shire and Metropolitan Sydney - it is not in the public interest," the Commission stated in its Statement of Reasons for Decision.
This was despite of the NSW Department of Planning, Industry & Environment concluding that the project was "approvable", and that its benefits outweighed the residual costs.
South32 said it is reviewing the report's findings, and will continue to engage with the New South Wales state government and relevant agencies in relation to the project.
Shares in South32 were down 5.0% at ZAR30.89 on Friday in Johannesburg. Its London shares were down 2.0% at 150.18 pence.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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