25 September 2008Australian Securities ExchangeCompany...

25 September 2008
Australian Securities Exchange
Company Announcements
Level 4
20 Bridge Street
Sydney NSW 2000

FELIX RESOURCES CLEARED TO DEVELOP MOOLARBEN PROJECT

Last night the Mining Amendment (Improvements on Land) Bill 2008 (the “Bill”), which
amends the Mining Act 1992, passed through the Upper House of the New South Wales
Parliament. In the second reading speech to the House The Hon. Ian Macdonald (Minister
for Mineral Resources) noted that:
• “Mining is a significant and important industry in New South Wales.”
• “In 2007 – 8 it contributed production worth $14.3 billion.”
• “It provided direct employment for about 20,000 people and indirect employment
for at least three times this number.”
• “The need for this bill follows a Court of Appeal judgement handed down on 8
August 2008 in the case of Ulan Coal Mines and The Minister for Mineral Resources
and Moolarben Coal Mines Limited”
• The Mining Amendment (Improvements on Land) Bill 2008 simply amends the Mining
Act to ensure the process set out in the legislation to deal with improvements reflects
the existing practice in relation to mining lease applications.”
Whilst the Court of Appeal has delivered its judgement in the Ulan Case no Orders have
been made as to the validity of the Moolarben mining leases 1605 and 1606 granted by the
Minister for Mineral Resources on 20 December 2007.
When the Bill comes into force it will validate any mining lease granted before the
commencement of the Bill if the process for the grant of that lease was as provided in the
Bill and which, as the Minister observed, “ … reflects the existing practice in relation to
mining lease applications.”
As that process was followed in the case of the Moolarben mining leases, we believe that
the Bill will ensure their validity.
Managing Director of Felix Resources, Brian Flannery, said; “the Government’s action has
restored clarity and certainty to mining leases that had been placed at risk of unnecessary
and costly litigation by the recent Court of Appeal decision.”
“This quick and sensible response by the Government means we can get back to the
business of developing the state’s resources and creating employment in the mid western
region of NSW”, Mr Flannery said.
“Felix Resources can now proceed with the development of its Moolarben mine, after
paying due compensation to affected landowners”, Mr Flannery said.
Contact details for further information
Brian Flannery Craig Smith
Managing Director Chief Financial Officer