The method forward for a Current South Wales Hunter Valley coal mine that has sat mothballed for over a decade appears space for a closing right showdown between a money-strapped mining firm, local horse breeders and planning authorities.
- Horse breeders derive been waging a right fight to dam a proposed 5-year extension to the mine’s approval
- The LEC decision method the model forward for the mine may perchance presumably be determined internal weeks
- A brand recent checklist reveals the mine’s owner to be $84 million in debt
The Land and Ambiance Court (LEC) has allowed, in a limited capability, the involvement of the Hunter Thoroughbred Breeders Affiliation (HTBA) which has been attempting to dam a proposed extension to the planning recognition of the Dartbrook underground coal mine.
The mine discontinuance to Aberdeen has been sitting mothballed since 2006, alternatively, the mine’s owner Australian Pacific Coal (AQC) utilized for a 5-year extension that would pave the model for operations to renew thru till 2027.
After within the origin rejecting components of the software, the Honest Planning Commission (IPC), as a delegate of the Minister for Planning, reached an agreement with AQC to grant the extension, nonetheless its validity has since been legally challenged multiple occasions by the Hunter Thoroughbred Breeders Affiliation (HTBA).
HTBA used to be seeking mountainous involvement in a conciliation convention that would allow them to put up written and oral arguments, stream-examine witnesses and imply proof.
AQC adversarial this, arguing the Court had no power to fabricate the picture, and that it would result in unreasonable designate and extend.
Justice Duggan ruled that HTBA’s involvement be limited to purely written submissions on factual two components of AQC’s extension proposal.
She stated the Senior Commissioner “may perchance presumably be assisted by a transparent and concise instruct of the submissions made by HTBA’s right representatives that clearly acquire a divergent search for of the means to impose such circumstances”.
HTBA may perchance derive till July 23 to fabricate its submissions.
AQC examine final result ‘ASAP’
Some analysts relate AQC is relying on securing the extension recognition of a a lot-wanted financial boost.
The firm beforehand educated the ASX it entered right into a revised agreement with the Minister for Planning that addressed right points with the common proposal.
In its most as a lot as date message to merchants, the firm stated it hoped to renew negotiations with the IPC and Minister for Planning “as soon as conceivable” after July 23, and would quiz the Court to ratify the 5-year extension of model consent.
Limited available alternatives
A recent checklist from consultancy agency EY equipped recent insights into AQC’s financial convey.
AQC has negative acquire resources of $44 million, debts of $84 million, no cashflows to provider ardour responsibilities and a market price of factual $8.6 million.
A strategic overview of the Dartbrook Mission triggered a capital raising exercise alongside side the sale of water rights and land surrounding the mine to its majority shareholder Trepang Products and services for $34 million.
EY’s checklist discovered the sale used to be “ultimate and reasonable” nonetheless otherwise painted a bleak checklist of AQC’s financial outlook.
Moreover selling land and water rights, it discovered AQC had “limited different alternatives” to decrease debt and it used to be “no longer in point of fact that an different superior proposal” would emerge.
“AQC has no recent operations, a vital debt burden and is heavily reliant on Trepang, its predominant shareholder, and its mates for funding,” the EY checklist discovered.
The checklist moreover published that AQC has made “some efforts” to sell the alternate nonetheless no affords derive been got.