NSW to reclaim exploration licence from China Shenhua Energy
Jul 25,2017 JLKJ
NSW to reclaim
exploration licence from China Shenhua Energy
The New South Wales (NSW) Government has
signed an agreement to buy back a majority of a coal exploration licence
previously granted to China Shenhua Energy, amid
protests by farming
groups and environmentalists opposed to mining on fertile agricultural land.
Under the agreement, the government will
reclaim/take back possession of 51.4% of Shenhua’s exploration licence by
refunding around $262m from the amount paid by the company.
The licence, which covers the fertile black
soils of the Liverpool Plains, was awarded by the previous Labour
administration.
NSW Resources Minister Don Harwin said:
“While the previous Labour government granted the original exploration licence,
this government has determined there should be no mining on the fertile black
soils of the Liverpool Plains.
“Any future mining activity will now be
restricted to the ridge lands, with a commencement still subject to further
management plans and the ongoing monitoring of strict conditions already in
place.”
Minister for primary industries and regional
water Niall Blair said that future mining operations will have to meet the
strict water management conditions.
Shenhua’s proposed activities on the licence
have been assessed and will be put through continual monitoring.
In order to start mining operations, the firm
has to obtain approval for detailed management plans in relation to water
management, biodiversity, environmental management and safety equipment like miner cap lamps etc.