PERTH (miningweekly.com) – Rio Tinto subsidiary Coal & Allied is appealing the New South Wales Land and Environment Court’s decision to overturn the development consent for its Warkworth expansion project.

Earlier this month, Coal & Allied warned that some 1 300 jobs might be in jeopardy if the expansion plan did not proceed.

Acting MD Darren Yeates said on Tuesday that the appeal would seek to overturn a decision that would hurt not just Mount Thorley Warkworth mine and its employees, but also the mining industry across New South Wales and the countless other businesses who rely on it.

“Mount Thorley Warkworth mine has been operating for 30 years and this rejection threatens the jobs of the 1 300 employees who rely on its future. It's also a significant blow for many other businesses across Australia, as Mount Thorley Warkworth spent more than $600-million with close to 1 000 suppliers in this country last year.”

The expansion project would see Coal & Allied operate the mine until 2033 as opposed to the current expiration date of 2021, at existing production rates of around 12-million tons a year, producing some 144-million tons of coal.

Yeates noted that the court's decision was without precedent in New South Wales and overturned a three-and-a-half-year approval process where the project secured approvals from the relevant state government regulators, the independent Planning and Assessment Commission and the commonwealth government.

“This sets an alarming precedent for the assessment of continuing mines, as well as new ones. It brings into question the ability to successfully secure development consents for major projects in New South Wales. This will have further implications for the viability of the mining sector, which generated $14.2-billion for the state's economy last financial year and employed around 86 000 people.”

Following the court decision, Coal & Allied had begun a thorough review of future operations at Mount Thorley Warkworth.

Yeates said the unfortunate reality was this decision came at a time when the Australian coal industry was struggling to remain globally competitive in the face of high costs, a strong Australian dollar and low prices.

“Mount Thorley Warkworth mine has been working to strengthen its long-term viability by reducing costs throughout this year. Regrettably, 40 employees and contractors are either having their position made redundant or being let go from the site today, as part of this ongoing work.”

He noted that the employment impacts were the result of managing the severe headwinds facing the resources sector.

“However, people should be under no illusions – the rejection of the Warkworth extension project is an added threat to jobs at Mount Thorley Warkworth mine and the suppliers we do business with.

“Our appeal is aimed at providing security for our workforce, the many other businesses who rely on us and the wider mining industry,” Yeates said.