The Korean power company seeking to develop a 3000 hectare mixed mining project in the Bylong Valley has committed to contributing $8.95 million to the shire over the life of the mine.
KEPCO Australia has made an offer to enter into a Voluntary Planning Agreement if its Bylong Coal Project is approved.
Currently under review by the Department of Planning and Environment, the application seeks to develop two open cut mines and a third underground to extract 6.5 million tonnes of thermal coal per annum.
The company’s representatives have met with Mid-Western Regional Council staff, general manager Brad Cam and Mayor Des Kennedy to discuss the contributions.
A report to council estimates that the company will provide $325,000 to council annually over the 27 year life of the mine.
Under the proposed agreement the company will provide $1.5 million to the council if the department grants development consent; $1.25 million on the mine commencement date; and $0.05 per tonne of coal transported by rail from the development.
“While in the past council has negotiated on the basis of employees, in this instance there is a move toward a more readily quantifiable sum around the actual coal transported,” council said in its report.
The terms of the offer have not specifically directed which projects can be funded by the VPA.
If approved, the project will include two open cut mines expected to operate for ten years and an underground coal mine to operate for 20 years.
The required infrastructure will include a administration, workshop, bathhouse, explosives magazine and other open cut and underground mining facilities, as well as haul road and overburden emplacement areas.
KEPCO says 800 people will be employed during the construction phase and 470 during operations.
However, an environmental assessment of the project completed by Hansen Bailey questioned the peak workforce, suggesting it was an “over estimate” based on other mines in the region.
“There is no detail to support the high number of construction workforce.”
A workforce accommodation facility has been incorporated into the development application.
The report will be considered at council’s meeting this week and is expected to be placed on public exhibition for 28 days.
A follow-up report is expected to be submitted to council following the exhibition period.
Source: Mudgee Guardian, 15 February 2016