In a statement to the press it said:

“Cobbora Holding Company has recently provided the Department of Planning and Infrastructure a Project Update Report for its proposed open cut coal mine near Cobbora.

“This update reflects a substantial revision to the scale of the project that was originally proposed,” said Steve Ireland, Cobbora Holding Company’s acting chief executive.

The project is now smaller with a decreased footprint and mining rate. The revised mine plan reduces the maximum coal production rate from 20 Mtpa to 12 Mtpa. The coal extraction area has been reduced from one large pit covering 3900 ha to a number of smaller pits covering up to 3000 ha.

The mine life remains 21 years.

These changes will generally reduce potential environmental impacts of the mine. This includes avoiding a number of sensitive environmental areas including creeks and agriculturally valuable land.

It is proposed to transport the coal east by rail to supply power stations in the Hunter Valley and on the Central Coast. Coal will no longer be transported to the Mt Piper and Wallerawang power stations along the Gwabegar line which passes through Mudgee, Kandos and Rylstone.

“To continue to meet energy demands in NSW and Australia generally, NSW electricity generators need a reliable local source of coal,” Mr Ireland said.

“Otherwise, generators will be increasingly exposed to international coal prices which have risen sharply.”

The environmental assessment for the revised project is in preparation. Cobbora Holding Company will consult widely with the local community and other stakeholders in the coming months.

“It’s important that the community understands our project and that we understand community concerns so that we can properly address them,” Mr Ireland said. “We will be contacting affected people directly and holding information days to ensure good information interchange occurs.”

The Project Update Report will be available on the Department of Planning and Infrastructure’s website following release of updated Director-General’s Environmental Assessment Requirements for the project.

In other mining news, Alkane’s managing director Ian Chalmers is still upbeat on the progress of two explorations near Wellington.

“These will recommence exploration and drilling when the cropping season is complete,’’ he said.

“In relation to the Obley Road project this is moving well.’’

and hopefully next year we’ll have more promising news on start dates etc’’ he told the Times.