Name of the Project
Dendrobium Next Domain life extension project.

Location
Near Wollongong, in New South Wales, Australia.

Project Owner/s
South32.

Project Description
The New South Wales Independent Planning Commission blocked the expansion plans for the project in February 2021.

The proposed project included an additional 78-million tonnes of run-of-mine coal recovered from two new areas, Areas 5 and 6, comprising 21 long-wall panels, and would have extended the mine life until the end of 2048.

Potential Job Creation
Not stated.

Capital Expenditure
A$956-million.

Planned Start/End Date
Coal production from Area 5 was expected to start in 2024, with Area 6 production to follow about 19 years later.

Latest Developments
South32 has warned of a $728-million pretax impairment charge for its Illawarra metallurgical coal operations for the 2021 financial year, following a review of the asset’s carrying value.

The miner has told shareholders that the impairment charge reflected the increased uncertainty created by the New South Wales Independent Planning Commission’s (IPC's) decision to refuse the application for the Dendrobium Next Domain life extension project, and the resultant potential impacts on the economics of the broader Illawarra complex.

The IPC found in February this year that the proposed mine design risked long-term and irreversible damage to greater Sydney and the Illawarra’s drinking water catchment.

In its finding, the IPC stated that the proposed longwall mine design introduced uncertainty regarding the extent of environmental impacts and South32’s ability to manage those, adding that the project was likely to lead to potentially significant surface water losses into the groundwater system.

The findings also questioned the adequacy of South32’s proposed offset and compensatory provisions for impacts on water quantity and quality in the catchment, and stated that the predicted Scope 1, 2 and 3 greenhouse-gas emissions from the project would be "significant".

South32 has scaled back on project activities while considering its options, following the IPC decision. These options include starting proceedings in the Land and Environment Court of New South Wales for a judicial review of the decision, and the potential submission of an alternate mine plan to the New South Wales Minister for Planning and Public Spaces to determine whether the project is State Significant Infrastructure.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
South32, tel +61 8 9324 9000.