PERTH (miningweekly.com) – Mining giant BHP Billiton on Wednesday welcomed a decision by the New South Wales Planning Assessment Commission (PAC) to approve a modified extension of the existing Mt Arthur opencut operation.

The extension would see BHP extract an addition 128-million tonnes of run-of-mine coal from the Mt Arthur operation, extending the mine life by four years, to 2026. Mining at the Mt Arthur operation would continue at a steady pace, with the project operating at its currently approved maximum rate of 32-million tonnes a year.

The extension would require a capital investment of some A$66-million, and was expected to generate about A$300-million in royalties for the New South Wales government.

In its report the PAC said the proposed extension of the Mt Arthur project was reasonable and logical, but the body has imposed certain conditions on the approval, including the listing of blasting activity.

A BHP Billiton spokesperson told Mining Weekly Online on Wednesday that since lodging the application in February 2012, the company had undertaken a comprehensive environmental assessment that examined the impacts of the proposed modification project, as well as the cumulative impacts when combined with other major approved mining operations.

“The Department of Planning and Environment has now completed a thorough and rigorous assessment of these environmental assessments and additional studies and is satisfied that the proposal would not significantly increase the impacts of the approved project. The department believes that the residual impacts can be adequately mitigated, managed, and/or offset through the implementation of the recommended conditions,” the spokesperson said.

“The approval is consistent with the findings and recommendation of the director-general of the Department of Planning and Environment that the benefits of the modification project outweigh its impacts and it is in the public interest and should be approved, subject to stringent conditions.”

BHP said that it would work with the community and relevant stakeholders to ensure impacts from its operations were appropriately managed and mitigated and compliance with its obligations under the conditions were achieved.