Greens say Northern Energy Corporation’s announcement to shelve Colton Coal Mine is not credible

Posted by Jim on June 4, 2010

The Greens Wide Bay candidate, Dr Jim McDonald, said today that he would believe Northern Energy Corporation had shelved the Colton Coal Mine project when there was evidence that the company had withdrawn its application for a mining licence.

He was commenting on a statement by NEC Managing Director, Keith Barker, on the ABC that the 40% super tax would make the mine non-viable.

Dr McDonald said NEC were grandstanding and attempting to hold the community to ransom.

“The company has reported up to 100 million tons of coal. That is not a marginal investment for a greenfields coalmining company.

“The fact that the Colton Coal Mine had ridden roughshod over the residents of Aldershot shows how seriously they were prepared to commence digging the mine as soon as a mining licence was granted. They glossed over the impact on the health of children living near the mine.

“They didn’t do that for a marginal investment and Mr Barker’s statement does not compute with the company’s latest ASX statement.

“NEC told the ASX in its April report of its intention to extend the resource of hard coking coal and increase the size of the mine development in parallel with the initial establishment of the open-cut mine.

“NEC is blatantly supporting Warren Truss and Tony Abbott and their opposition to the mining tax. Mr Barker has joined in a concerted, self-interested political campaign by the mining industry against the Rudd mining tax.

“The Rudd government had botched the introduction of the tax, and tripped itself up in spin, but the idea of a proper return to the Treasury on Australian resources was correct.”

Dr McDonald said that the State Government should reject the mining lease application. The best result for anyone living within 10 kilometres of the proposed mine is that it should not go ahead at all.