Thanks - here is one back at you Breakthrough for Gujarat on...

Thanks - here is one back at you

Breakthrough for Gujarat on mine
BEVAN SHIELDS
09 Mar, 2012 04:00 AM
The Department of Planning and Infrastructure has backed away from its threat to block the start of longwall mining at Russell Vale next week.
The backdown has increased the likelihood Gujarat NRE Coking Coal Limited will meet its March 13 target.

The department has refused to elaborate on why it changed its position so radically.

Just two weeks ago, it was opposed to Gujarat’s proposed use of new longwall mining equipment at the mine without development consent.

At the time, Gujarat executive chairman Arun Jagatramka had maintained coal could be extracted from two longwall panels, provided a Subsidence Management Plan (SMP) was approved by the Department of Primary Industries.

However, the Department of Planning and Infrastructure said even if the SMP was approved, the two panels could not be mined until it had granted approval for a separate major expansion project, which is still months away.

The department provided the Mercury with four statements between February 10 and February 27 confirming that position.

‘‘The department does not consider that secondary extraction of [the two] longwalls should take place solely under an SMP,’’ a department spokesman said on February 27.

‘‘Such extraction should not take place without also obtaining development consent.’’

However, after a series of meetings with Gujarat representatives, the department has reached a very different position.

‘‘The department has considered further information from Gujarat that it may be possible to begin limited longwall mining, under legislative provisions which exempt it from requiring development consent,’’ a spokesman said yesterday.

‘‘As a minimum, the department will require an approved SMP as part of appropriate environmental controls before any restricted longwall mining can begin.’’

The department declined to elaborate on what information it was provided by Gujarat and how it reached the new position.

The SMP’s approval is understood to be imminent.

There had been widespread concerns Gujarat’s financial position could be compromised if it had to wait until the end of the year to use $90 million in new longwall equipment.

Gujarat issued a statement yesterday saying it was ‘‘committed to achieving our target and is working with all government departments to achieve this outcome.’’

NRE employs around 600 people at Russell Vale and Wongawilli