A controversial plan to reopen a 'mothballed' coal mine in the New South Wales Upper Hunter Valley has been approved, but a five-year extension on the mine's life has been denied.
Australian Pacific Coal Limited has an existing approval to extract up to 6 million tonnes of run-of-mine coal annually from the Dartbrook mine using longwall methods until 2022.
Dartbrook Coal, near Muswellbrook, previously owned by Anglo American, has been under 'care and maintenance' since 2006 after three deaths at the site and a series of engineering and safety issues.
Australian Pacific Coal's bid to reopen it was recommended for approval by the NSW Government but faced fierce opposition by the Upper Hunter Shire Council and community members, including the local thoroughbred industry.
The Department of Planning, Industry and Environment referred the matter to the Independent Planning Commission (IPC) in January this year.
Today the IPC announced the mine can restart operations using underground 'bord-and-pillar' methods, but the company's bid to extend the current mining approval by five years to 2027 was refused.
"A five-year extension would not be in accordance with the principles of ecologically sustainable development or inter-generational equity; and, as such, is not in the public interest," the IPC said in a statement.
"The impacts relating to air quality, noise, subsidence, groundwater and greenhouse gas emissions have not been fully considered in this application."
Australian Pacific Coal has previously stated the five-year extension of the approval period was required to justify the capital expenditure involved in recommissioning the mine.
Last August, Australia Pacific Coal announced an equal joint venture with Stella Natural Resources, but last month, Australian Pacific Coal said Stella did not satisfy certain conditions under the share sale agreement and so the agreement was terminated.
Australian Pacific Coal then sold off 35 million shares in Bowen Coking Coal for $1.6 million, while searching for a new backer.
Concerns have been raised by community members about the financial viability of the company.
