State-owned utilities Macquarie Generation, Delta Electricity and Eraring Energy have formed an unincorporated joint venture to back the project, but aim to secure a mining company to develop and operate the mine.

 

The JV is seeking state government approval to mine 30 million tonnes per annum of raw coal and produce 20Mtpa of product coal.

 

Open cut mining is slated to start in 2013 for a life of 21 years.

 

The power companies are proposing to process the coal through one 20Mtpa coal-handling and preparation plant and also seek approval for two water pipelines and a 25km rail spur line.

 

In its preliminary environmental assessment, consultancy Environmental Resources Management Australia estimated the Cobbora mine will need 4 gigalitres a year for dust suppression and to operate the CHPP.

 

The JV aims to stitch up water licences to receive 1.5GL a year from a 25km pipeline to the Cudgegong River.

 

The other 50km pipeline will tap into the excess water at Xstrata’s Ulan longwall mine, but ERMA estimated that up to 1GL a year will have to come from other sources, including groundwater at the proposed Cobbora mine.

 

While the environmental assessment is underway and will further investigate water supply options, the Mid-Western Regional Council is concerned the 1.5GL load from the Cudgegong River will impact agriculture.

 

The council said this amount of water equated to a significant portion of the high-security water licences within the catchment.

 

“Consequently a detailed assessment should be made of the long-term impacts on the agricultural industry in terms of social and economic impact, as particularly agriculture is a major contributor to the local economy,” the council said.

 

More recently, Warrumbungle Shire Council Mayor Peter Shinton expressed fears to the ABC that the nearby small town of Dunedoo would not be able to handle a large population surge as there was a lack of roads and water and sewerage schemes.

 

The construction workforce for the mine is expected to increase from 50 this year to more than 625 in 2012-13.

 

The operational workforce is tipped to increase from 50 in 2012-13 to about 1700 in 2032-33 when the mine hits peak production.

 

A ramp-up will lift output from 6Mtpa of thermal coal in 2013 to 20Mtpa in 2015.

 

The 24-7 mine will target the Flyblowers Creek seam at depths of 10-20m and the Upper Ulan and Lower Ulan seams at depths of up to 100m.

 

Most of the coal has a high-ash content with blending and washing required before it is used to help meet the state’s electricity needs.