Australian Pacific Coal says its application to extend the mine life at the mothballed Dartbrook coal mine has been rejected by a state regulator.
The company had sought permission from the New South Wales Independent Planning Commission to extend the mine’s life for an additional five years beyond the current approval, which ends on December 2022.
The Commission on Friday ruled the company could restart underground mining using “bord-and-pillar” methods up until December 2022.
However, it said a five-year extension for the mine would not be in the public interest.
“The impacts relating to air quality, noise, subsidence, groundwater and greenhouse gas emissions have not been fully considered in this application,” it said.
The Dartbrook mine was placed on care-and-maintenance in late 2006 due to operational difficulties and lower coal prices.
“It is disappointing the IPC did not approve the additional 5 years of mine life,” Australian Pacific’s Executive Chairman John Robinson said in a statement.
The company said it will review the reasons for the decision and evaluate all available options.
By 1045 AEST, shares in the company had slumped 47.4 per cent to 20 cents.