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ABC News
ABC News
Business
By Avani Dias

Springvale Mine closure would not affect power prices, analysts say

The Mount Piper Power Station is supplied with coal from Springvale.

Closing a coal mine west of Sydney will not result in increased energy prices, according to expert assessments obtained by the ABC, contradicting the New South Wales Government's predictions it will.

The Springvale Mine at Lithgow, which is the sole supplier of the Mount Piper Power Station, was facing potential closure after the Land and Environment Court ruled that planning authorities applied the wrong test when granting its approval.

The Government is planning to circumvent that legal action by introducing legislation that will allow the mine to remain open.

It said Mount Piper's coal supplies could be compromised without intervention, increasing the likelihood of blackouts and increases in power prices.

Environmental Defenders Office (EDO) chief executive Sue Higginson said the group had "expert evidence to suggest that there really isn't a basis or a foundation to draw that conclusion".

"In fact, there's enough coal stockpiled and there are alternative ways through modifications of technology to continue the supply of coal," she said.

One statement, seen by the ABC, by financial analyst Tim Buckley from the Institute for Energy Economics and Financial Analysis, said shutting down the mine would not cause a coal shortage or consequently drive up power prices.

"There are clear options that are well within the capacity of three major multinational energy corporations to solve the problem of a coal shortage-induced NSW peak-power period shortfall over 2017/18 and beyond," he said.

"A full analysis shows there is clear optionality across coal sourcing and stockpiles that could be put in place that needs to be considered that together provide significant power outage risk reduction."

Ms Higginson said it was highly likely the new legislation would stop the case on the validity of the Springvale mine being heard in court next week.

She said the legislation was going against the rule of law.

"At the moment it's really important that the veracity of evidence before the court, Centennial Court's claims and Energy Australia's claims are actually tested in a court of law," Ms Higginson said.

"It's a really important process that the courts provide to be able to really test claims that players, proponents, and parties are making in the public arena and to Government."

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