Miner supplying Mt Piper power station seeks urgent hearing over invalid licence

Jul 18, 2023

Centennial Coal, whose licence was ruled invalid after its Springvale mine was found to be polluting Sydney’s water, wants matter resolved in two weeks

The miner that supplies Energy Australia’s Mount Piper coal power station with coal has sought an urgently expedited court hearing to establish how it can continue to operate without a valid licence.

But Centennial Coal did so without making a formal application for an early hearing and without evidence supporting the need for it, leaving the judge appearing sceptical of the claim.

The move follows an Energy Australia public campaign, arguing the company’s Springvale mine must be allowed to continue operating, despite the NSW court of appeals finding it was polluting Sydney’s drinking water and therefore operating on an invalid licence. Without the licence the 26-year-old Mt Piper power station, which provides about 10% of NSW energy needs, could close before 2042.

In August, the court of appeals found the mine’s operating licence should not have been approved, since it involves discharging polluted water into Sydney’s drinking catchment. State planning law requires that developments in the catchment must have a “neutral or beneficial” effect on water quality but the court found the mine’s discharge was having a negative effect.

The case was brought by environmental group 4nature, who said the ruling meant mining should stop, but that they were willing to work out a more workable solution.

“We are willing to sit down with the government to find a way that honours the intent of the judgment while addressing immediate safety and job concerns,” 4nature spokesman Andrew Cox said at the time.

Greens energy spokesperson Jeremy Buckingham was more strident, saying at the time: “The fact that Mount Piper power station is reliant on the Springvale mine for its coal supply does not make them above the law nor give them an excuse to pollute Sydney’s drinking water supply.”

4nature and Centennial Coal are now seeking directions from the NSW land and environment court to establish what should happen with the mining operation.

Centennial Coal argued in court on Friday for the matter to be resolved in less than two weeks, arguing a financing deal that would allow it to build a water treatment facility could be put in jeopardy by any delay. It did so without any formal application for an expedited hearing and without any evidence to support the claim of urgency.

Lawyers from the NSW Environmental Defenders Office argued that did not leave them with enough time to consider the large amount of material provided by Centennial Coal and the other respondents.

Justice Timothy Moore described the proposal as “very accelerated” and said they were asking for an “indulgence” without any proper application or evidence to examine. He noted that he had been provided with “a wheelbarrow” of documents that would need to be considered for the hearing.

“I’m not prepared to deal with [the request for an expedited hearing] without proper evidence and the opportunity for the applicant to cross-examine,” Moore said.

“I’m not sure it is for me to contemplate what you ask me to do, absent a proper application for it and absent evidence in support of that application,” he said.

Moore gave Centennial Coal until Monday to come back with an application for an early hearing and evidence supporting that application.

The call for urgency follows further public campaigning by Energy Australia, which put out a press release on Wednesday making the same argument.

Energy Australia managing director, Catherine Tanna, said of the water treatment plan, “The project requires significant investment but right now it’s in peril while the mine planning consents are unresolved.”

The water treatment plant would take the polluted discharge from the mine, clean it, and pipe it to Mt Piper power station for use in the cooling towers.

“That project is shovel-ready. It will mean no water is discharged from the mine into river systems, which is a good outcome,” Tanna said.

When planning approval was granted for the treatment plant, they committed to reach financial close this month, and begin construction in October.

Energy Australia has been arguing that the Springvale mine is the only source of coal Mt Piper can use, and without it Mt Piper will not be able to run to the end of its 50-year life in 2042.

However, Springvale’s coal will be depleted within a decade, requiring another source of coal after that. There are a number of other coalmines in the area that could be revived, and Energy Australia has planning approval for a rail coal unloader, which would allow it to get coal directly from the nearby train line.

Energy Australia touts this project on its website, saying: “This will ensure ongoing operational needs are met and that Mt Piper will have access to competitively priced coal.”

A spokesman for Energy Australia said there were still a number of planning approvals that needed to be obtained before that project could be completed.

Mt Piper power station can also receive coal by road, having done so in the past, suggesting it could truck coal from a nearby rail unloader.