PERTH (miningweekly.com) – ASX-listed Australian Pacific Coal on Monday said that it is in discussions with the New South Wales government after a decision was taken last week by the state government to prohibit future opencut mining operations at the Dartbrook project, by way of amending the state planning policy.

“It is clear the Upper Hunter locals do not oppose the underground mine at Dartbrook, however, an opencut mine is not in line with extensive community consultation. By amending the Future of Coal map we will rule out opencut mining, without impacting the proposed extension for the underground mine,” Deputy Premier John Barilaro said last week.

Instead, the government will release the Wollar area for potential coal exploration, with interested parties to be invited to apply for an exploration licence.

“Release of the Wollar area follows an assessment under the Competitive Allocation Framework and opens it up for potential exploration activities, to investigate the viability of mining.

“Applicants with suitable technical and financial qualifications will be invited to participate in a tender process, with the winner able to proceed with exploration for coal in the Wollar allocation area,” Barilaro said.

“Last year, I announced the Future of Coal Statement to provide certainty to industry and communities by mapping out where coal projects will or won’t continue and both of these decisions reflect that commitment,” Mr Barilaro said.

“We want to make sure that coal mining can take place in areas where it makes sense.

“Coal mining generates jobs for communities and royalties that can be used for essential public services and infrastructure and regional economies will depend on coal mining as a key industry for decades to come.

“The support mining provides to our regions should not be underestimated, it provides career opportunities for young people, brings families into towns and keeps money flowing to support other businesses.”

Australian Pacific Coal on Monday said that the company has sought a moratorium on the decision to bank opencut mining at Dartbrook, to allow further consideration by the company and its joint venture (JV) partners, but said that at this stage, no response from government had been received.

The company did, however, point out that the allowance of underground mining at Dartbrook was akin to plans currently being proposed by Australian Pacific in accordance for its approvals, and would remain the primary focus for the company and its JV partners.

The company in September struck a deal with two of its suitors and its creditor and shareholder Trepang Services, which could see the Dartbrook mine be re-commissioned as a coal-producing asset.

Under the strategic partnership, M Resources and Tetra would each earn a 20% direct joint JV interest in the Dartrbook mine, while Trepang would earn a 10% free-carried direct interest in the JV if it agrees to extend the existing access and compensation agreement with Australian Pacific, as well as agreeing to various easement arrangements and the transfer of water rights on mutually agreeable terms, that would allow underground mining to continue for the duration of mine life extension approvals.